The Department for Work and Pensions (DWP) is expected to significantly reduce the timescale for repayment of arrears for tenants on Universal Credit (UC),
DWP has shared with several stakeholders, including safeagent, their intention to introduce a change next month to the timescale for repayment of arrears for tenants on UC, which will be welcomed by landlords.
Currently landlords can wait up to nine weeks after notification for arrears to start to be paid. With the proposed change in DWP’s processing method, the timescale will be reduced to approximately seven days which is a significant difference.
The changes will apply only to new rent arrears applications and direct rent payments as well as rent arrears payments will continue to be processed separately. More details will emerge on the change ahead of the launch date.
Isobel Thomson, safeagent’s chief executive said: “We are delighted with this change and it will make a big difference to landlords to know that in the event a tenant on Universal Credit falls into arrears that these will be paid quicker.
“We look forward to the detail of the change when it is launched and well done to DWP for their work on this for the benefit or tenants, landlords and agents”