New data released today by the Department for Work and Pensions (DWP) reveals that only 6% of Universal Credit claimants in the private rented sector have their rent paid directly to their landlords, compared to 35% in the socially rented sector. This is despite calls by Liberal Democrat DWP spokesperson Stephen Lloyd to make payments to landlords default.
Lloyd has argued that maintaining the status quo will lead to many of the 1.3 million benefit claimants in the private rented sector being evicted, and potentially made homeless. According to the Residential Landlords Association, 73% of landlords still lack confidence in renting to tenants on Universal Credit due to uncertainty that they will be able to recover rent arrears, while 38% have already experienced UC tenants going into arrears.
Stephen Lloyd, Liberal Democrat DWP Spokesperson said:
“Back in January I led a Parliamentary debate calling on the government to make direct payments to private landlords the default option for Universal Credit. Consequently I am deeply disappointed these are still far lower in the private sector than the socially rented sector.
If this doesn’t change, we should expect a spike in evictions by private landlords who are already wary of renting to people on benefits, and a rise in homelessness that local authorities will have to deal with. People on Universal Credit often live in difficult circumstances which can prevent them from paying their rent on time, as soaring rent arrears under UC testify to.
“And the government cannot argue that this is technically unfeasible, because their DUP friends in Northern Ireland have already figured out how to make payments to landlords the default option. If the Universal Credit ‘computer’ allows that to happen over there, then why not here?”