LHA/Universal Credit

Dear Raj,

Further to our earlier conservation I have since spoken with Bill Irvine and he is in agreement, as it stands only Banks, Building Societies and certain affiliated Credit Unions are able to receive direct payments from DWP/Universal Credit.

I do not want to speak about individual companies but to date companies like Tasker have approached DWP to receive direct payments and this has not been facilitated not to say this may change in the future and give landlords more options and avenues to receive direct payments.

From my understanding with Credit Unions you may have to pay a small monthly fee but you have a higher chance of receiving a direct payment, I would check with your local Credit Union to see whether they are affiliated with DWP.

Any further questions please feel free to get in touch.  

This is most bizarre

I believed that ALL CU were able to be used for receipt of UC payments.

If I ever had UC tenants I would insist on their using a CU.

I didn't realise that that all CU aren't able to do so.

This seems like a major UC failure

Surely the DWP should have ensured all CU were ready for UC!?

Paul

You're right, ALL Credited Unions are able to facilitate payment. Sherrelle's point is to check out first that they are the real thing and not something in wool's clothing.

A number of private (for profit) organisations have set themselves promoting the idea they can receive Universal Credit payments. Some, in fact, in the past, have actually received such payments. However, when DWP found out they put a stop to this. As Sherrelle's states, payments currently can only be paid into bank, building society, credit union and post office accounts. At some point in the future there may be others who'll be able to offer a similar service. Before signing up, ask for a letter of comfort, confirming DWP is able to make payment.

In terms of Raj's question, Sherrelle has already dealt with it. However, if you really want to protect your investment come along to one of the RLAs sessions https://www.rla.org.uk/landlord/courses/...urse.shtml or, if you live in London come to mine on 11th April, 2017 https://universalcreditadvice.com/housing...e-nuances.

UC has so many hidden anomalies and complexities, not applicable to LHA you'll need medication after the event!

Bill Irvine

UC Advice & Advocacy Ltd

https://www.ucadvice.co.uk

So you suggest that the LL confirm that a particular alleged CU is a proper CU?

I thought they all were, but I appreciate your advice suggesting some maybe masquerading as one when they aren't!!

Is it as simple as just requesting a comfort letter from the DWP confirming a particular CU can accept UC payments?

Paul,

All the landlord need do is check the Credit Union is properly registered as a charitable organisation. ABCUL (umbrella organisation) might be able to help.

Bill

Hi Sherrelle, thanks for your time. It was most helpful.

I do operate "advanced LHA" locally (2 PLUS 2 etc), which allows me to claim higher than the 'standard LHA' as long as I can find the right families so my concern has been to protect this income in the future.

I will be following your advise and have already obtained information from my local Credit Union. They operate something called a Rent Account (An account to help members get Local Housing Allowance paid straight to private landlord without problems associated with basic bank account or cash payments). They also offer tenants a Budget Account (to help people make sure bills get paid)

Also, thanks Bill for your input

I hate saying this now but why would any landlord want to run there business on UC

Its not worth the effort I am sorry to say

Unless one of my customers who is working loses there job I am just not interested in UC

If more Landlords walked away from this sector the faster the Govt will see they are wrong about S24

Its out trump card  why should we do the Govt favours to house there homeless when we are treated so badly by the Govt

and long term a Landlord will not see any increases in rent in the next 4 years ?????? nonsense  when we will all be paying more one way or another to be a Landlord

UC not with me yet. When it is I will most likely use the local CU

I wont be using Tasker or other private companies even if UC can be  paid to them

Spoke to the local MK CU  boss some time ago. Satisfied so far as to its  legitimacy.

But I am on a rolling programme moving away from LHA / UC

Having to use a CU when the direct system works perfectly well already is annoying

Direct payments were brought in because tenants spend rent on other goodies

Payments to the tenant is turning the clock back

Yes they should be able to manage their money but many simply cant

There is no support in place to help them they are just chucked in the deep end

The government is setting them up to fail

Its an almost criminal use of taxpayers money

They are complicit in encouraging theft from the taxpayer

You don`t give a heroin addict their drugs for a month all at once they will kill themselves

Some people just do not know how to deal with stuff handed out to them all at once

A doctor would prescribe small amounts of heroin and monitor their behaviour and habits over a period

They offer support for their weakness. UC leaves people to sink further into debt and sec 21 will be the outcome

The logistics to change over to  CU will be difficult but once done its done

The CU say they will charge about £5- £7 per transaction when i enquired which must be 2 yrs ago now

Again its affordable but it justs adds another layer of unnecessary bureaucracy and means rents will go up

Like Raj I do  some advanced LHA and they will stay as they are more profitable still than working tenants

But now when an LHA tenant leaves they are replaced  95% of the time by working tenants

As DL says the effort is not worth it now to house LHA / UC .

And this is for multifaceted reasons - outsourcing collection of UC being just one of many barriers

Using a CU might be a pain for collecting rent compared to direct payments

However using such a methodology will remove permanently the risk of 'clawback'!!

So unless the LL has gone for protected UC payments then this will be a massive burden lifted from LL.

It was always the reason I would never accept direct payments.

It makes financial sense to use CU for both parties.

You never know it could force the feckless to change their ways!!?

The hard truth really is do you want t deal with customers who have nothing hence there on benefits ???

If you have problems with arrears ect you can not get blood from a stone

the landlord is on a loser from the start getting rent in arrears