Universal credit will see housing benefit paid direct to tenants each month (as part of a larger amount of benefit payments), instead of being paid to their landlords, as is currently the case.
Sanctuary Housing has taken part in one of the government’s pilot schemes to test the impact of the policy. Sanctuary’s head of income services, Daren Nowlan, shares his lessons for other landlords about how to manage the changeover.
Know your data
Sensible performance management measures are an essential part of managing cases. Being able to analyse rent accounts which are impacted by the changes early on means greater support can be provided where needed. Central to this is a responsive IT system that provides meaningful management information, records key UC data and, critically, can take a direct debit on any date to empower customers to manage their finances effectively.
Identify a universal credit expert
We found it worked well to identify at least one person to become the organisation’s universal credit expert to become a single point of contact for liaison. This person was given time to research and analyse best practice so that it could be fed back to other staff and provide a basis for training frontline officers.
We also found that a support team is a great asset, one not only well versed in universal credit but also able to provide customers with comprehensive advice about budgeting, managing debt and accessing free-banking. We also promoted longer term goals such as signposting for dependency issues, and support for access to work, education and training.
Work closely with the DWP
Working closely with the Department for Work and Pensions (DWP) is essential and we recommend attending meetings and participating in briefings with the local DWP office about universal credit to ensure staff remain well informed. Clearly it is important to turn around DWP queries quickly but it is worth reminding staff about the importance of data protection and making sure they know about the latest data sharing provisions.
Existing relationships with the local council should be maintained as they will still be processing many housing benefit claims. Landlords should ensure their processes and staff can work in parallel with both housing benefit and universal credit.
Anticipate tenants in need
Ensuring housing officers and lettings teams understand the implications of the new system will put them in a stronger position to identify tenants at risk. In our experience, tenant requests for a rent statement or letter confirming current rent was one of the early indicators of a change in circumstances that meant a universal credit claim was imminent.
The housing sector has already recognised the risk around tenants juggling multiple priorities in their budgets. To ensure rent is the first payment made from universal credit, income recovery teams need to ensure they are proactive in contacting tenants when payments are due.
We found that the personal touch, through home visits and telephone calls, brought benefits to both tenants and landlords alike. Tenants appreciated the opportunity to learn about universal credit and their responsibilities, and we were able to explain the importance of paying their rent promptly, reducing the likelihood of arrears forming.
Don’t overlook service charges
Review your service charges and understand which costs will be covered by universal credit and which will not. Make sure the tenant is aware of what they need to pay – even where an alternative payment arrangement (APA) is in place.
Make use of APAs
APAs should be submitted as a priority by landlords where the tenants face either a high risk of non-payment or where arrears total eight weeks rent. Close monitoring of APAs helps avoid problems later on. Landlords also need to be alert to changes in a tenant’s circumstances which could suspend the payment of housing costs.
Keep customers informed
Last but not least, keep tenants informed about universal credit, including their responsibilities, and any changes that may affect them, using your usual communications resources such as direct mail, leaflets, newsletters, websites and social media.
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