Government may consider new rules for universal credit

Government is now considering changing rules on universal credit to allow 'trusted' social landlords in receiving benefit direct before their vulnerable tenants fall into arrears.

The Department for Work and Pensions, National Housing Federations and some social landlords are now in discussion to set a scheme that would let some housing associations to receive benefits direct at an earlier stage before a tenat fall into arrears.

Under the new rule, social landlords has to wait until their tenants are in two months arrears before they can apply to arrange the benefit payments paid direct to them.

With this new proposed scheme, 'trusted' social landlords are able to apply directly if they feel that their tenants are likely to find difficulties managing their monies and fall into arrears.

Social landlords who will benefit from this proposed scheme will need to have a working title of 'trusted partner status' and some landlords may not qualify to participate under this scheme if they are not accepted as DWP's 'trusted partner'.

It is still early days yet and how to achieve a 'trusted partner status' is still unclear.

Number of accepted homeless by local authorities has dropped

However, the rising figure of people living in temporary accommodation according to Communities and Local Government figures,tells a different story. It has been revealed that as of 31 March this year, 58,590 was living on temporary accommodation and is 6 per cent higher to figure recorded last year.

Between 1 January and 31 March 2014, a total of 12,250 were referred as homeless by the local authorities, 7 per cent less than the figure recorded the same quarter this year.

A huge increase of 36 per cent was witnessed when the number of homeless households located outside their borough - of the 58,590 households in temporary accommodation at the end of March, 12,430 were in accommodation in another local authority district.

According to housing leaders for two London councils, boroughs are now fighting over secruing temporary accommodating to resolve the growing demand.

Homeless Link chief executive said that although there is a decline in the number of people applying for statutory help with homelessness is a relief, it is still worrying that more than half are not recognised by local authorities and they are being placed in unsuitable temporary accommodation.

DWP limits access to discretionary housing payments

Councils seeking for extra monies to help tenants affected by welfare reform had their funding limited because the government thinks that might buy their way out of bedroom tax.

The Department for Work and Pensions secretary, Ian Duncan has given councils £20 million in additional discretionary housing payments fund in July due to huge demands brought on by the bedroom tax.

Out of 86 local authorities who requested for additional funding, 27 were refused the whole amount they requested, while 18 was declined as the government felt that a full award would allow 'excessive buy out' of the policy.

As a result, only £12.9 millions of this pot was earmarked, with the remaining £7.1 million unspent. The DWP has pointed out that this just proves that the DHP was more than enough to meet the demands.

The 27 councils bid for £7.1 million, but were paid £3.5 million, while those denied on the grounds of 'excessive buy out' bid for £4.6 million and were paid £2.6 million.

1 in 3 now living in poverty

Nearly 18 million people can no longer afford decent housing condition a report led by University of Bristol and funded by the Economic and Social Research Council while 12 million people are too hard up to participate in any social activities.

Reports has also suggested that 2.5 million children live in damp accommodation and 1.5 million children live in a property that they cannot afford to heat the property.

Researches added that full-time work are very hard to come by and as such they are calling the government to take action to end poverty.

The reports revealed that more and more households are now falling into arrears on their household bills and in 2012 (21 per cent) than in 1999 (14 per cent). Typical arrears such as utility bills, council tax and mortgage or rent are the most common.

More Universal Credit to roll out in the North West

Starting on next Monday, 23 June, the next phase of Universal Credit will be implemented in North West England. As per the new regulation, dates have been set up on when this would take into effect. Job Centres affected are:

• 23 June – Hyde, Stalybridge, Stretford, Altrincham
• 30 June – Southport, Crosby, Bootle, Bolton, Farnworth
• 7 July – Birkenhead, Bromborough, Hoylake, Upton, Wallasey
• 14 July – Preston, Leyland, Prestwich, Bury
• 21 July – Eccles, Worsley, Huyton, Kirkby, St Helens, Newton-le-Willows
• 28 July – Chester, Congleton, Crewe, Wilmslow

Said areas will take new Universal Credit claims from the same claimant groups as the existing live areas (single people, with no dependents and no existing benefit claim). Further Universal Credit is due to roll out to other areas in the North West in the autumn.