NRLA: Benefits cuts affecting rental payments

In October last year the government cut Universal Credit by £20 a week, following a temporary increase in response to the pandemic.

NRLA: Benefits cuts affecting rental payments

Almost one in 10 private landlords renting to Universal Credit claimants have experienced at least one tenant having difficulties paying their rent due to benefits cuts, according to a YouGov poll for the National Residential Landlords Association (NRLA).

 

In October last year the government cut Universal Credit by £20 a week following a temporary increase in response to the pandemic.

Of those private rented households in England and Wales receiving support through Universal Credit to pay their rent, 55% had a gap between the support they received and their rent payments.

The NRLA warned that this will only become worse as a result of the government’s decision last year to freeze in cash terms housing cost support.

As many households face a cost of living crisis, the NRLA argued that a benefits system which property supports tenants is of critical importance.

It has called on the government to reverse its decision to freeze the Local Housing Allowance rate and ensure it properly reflects market rents.

Ben Beadle, chief executive of the National Residential Landlords Association, said: “Benefit payments are failing to give tenants or landlords confidence that they will be able to cover rents.

"This basic problem lies at the heart of a broken system in desperate need of reform.

“With households facing a cost-of-living squeeze, it is vital that the benefits system gives the protection that tenants deserve.

"That is why the Chancellor needs to end the housing benefit freeze as a matter of urgency.

"Without this many tenants and landlords face an uncertain future about how to keep tenancies going.”

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