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A new year means new sets of goals for the year ahead. For the landlords: adjustments for new sets of rules and regulations.
This year, another set of rules will be introduced under the Universal Credit. There are a couple of benefits being replaced by Universal Credit and one of these is the housing benefit.
Universal Credit will be one single benefit for people aged 18 to 64 years old paid to each household that is paid monthly. Some 16 and 17 year olds will be able to claim Universal Credit depending on their circumstances. The amount of
Universal Credit you can get will depend on the amount of money you earn.
This transition to Universal Credit will take place in three phases between 2013 and 2017.
For tenants, the amount for housing costs will be worked out in a similar way to the support provided by Housing Benefit (HB England, Scotland, Wales) under the current system. However, the intention is to make payment directly to the claimant as part of the Universal Credit, rather than to the landlord, to encourage people to manage their own budgets.
The Universal Credit will be introduced in Wales from October 2013 so there’s still more time to prepare on the new system that will be implemented soon. Landlords may be able to set plans on how to manage the changes that will take place.
This new rule will affect both the landlords and the tenants as they will receive less housing benefit and fewer direct payments. Will the “Bedroom Tax” affect the tenant’s housing benefit? Will this increase rent arrears for “Direct Payments”?
You can plan now how you will get yourself more prepared once the Universal Credit starts. And you’ll get ahead of others once you’re set.