The Department for Work and Pensions (DWP) has been trialling the governments Universal Credit scheme in six areas, which the department has called ‘demonstration projects’, from July 2012 to January 2013, and the outcomes are not looking good.
In one of the trial areas in Wales, Torfaen, tenants rent arrears soared from a total in the region of £20,000 to an astonishing £140,000 during the seven months of the trial.
Landlords are warning that the number of evictions will increase in proportion to the seven fold increase in arrears, putting tenants and landlords in financial difficulty.
Under the current housing benefit system, recipients can opt to have their rent paid directly to their landlord – which is very useful for those with health problems who find coping with household finances difficult or confusing.
When the new Universal Credit system is implemented in the autumn, all benefits will be paid direct…
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