Housing benefit

lukieboy96

Just found out from my housing association that I am supposed to make my account in credit, ready for Universal Credit! This is really frustrating because when I am paid my housing benefit into my bank I pay it directly to them! They said if I do not pay extra they will take me to court!! It is wrong.

Dunroamin

Are you in arrears?

BigAunty

What's the exact instructions you've been given? Type out what the letter has outlined for you.

I thought housing associations always received the HB directly and it bypasses the tenant completely. I know there are plans to change this. How long have you been receiving HB directly from the council?

lukieboy96

I understand it now. I was in a property, paying some rent because of Bedroom Tax, and the rest was paid to them directly from council. However, as I have done a mutual exchange, to a 1 bed. I now get it paid directly to me to get ready for the changeover to Universal Credits when everyone will receive it direct. As soon as it is in my account I pay it on the internet. Housing have said I need to be a month in credit even though housing pay me 2 weekly.

I am just going to pay a little extra each week. the letter freaked me out as it said if I have not cleared arrears in 14 days they would issue a note of Intention to Seek Possession!

Also, it was a good thing they contacted me as housing benefit had sent my last weeks rent to old address but as I had moved it had not gone onto my account! No idea where it went! But I am in credit!

I may of overreacted but with any change I go onto over drive and freak out.

Just to warn people, be aware of things happening to changes to benefits! Because I had a change in circumstances, that is why they now pay direct to me!

BigAunty

lukieboy96 wrote: »

... I now get it paid directly to me to get ready for the changeover to Universal Credits when everyone will receive it direct. As soon as it is in my account I pay it on the internet. Housing have said I need to be a month in credit even though housing pay me 2 weekly.

Universal credit is paid monthly which is a big change to many claimants who might receive numerous benefits paid in different and shorter time spans across the month. HB is paid fortnightly and for social housing tenants, paid to their landlords directly.

If I understand, under UC, tenants will start receiving the accommodation part of their benefits directly rather than it going to the social housing landlord.

Are they saying that at X date, you will need to be ready to pay out a month's worth of rent in one single payment? Whereas you are used to the majority of your rent reaching the social housing landlord directly without going through your bank account? Topped up separately with a little bit of your income to account for the bedroom tax/spare room occupancy rate?

We've seen some posts on this forum from people wondering how they are going to cope with the change from fortnightly or weekly benefits to monthly ones, how they are going to manage that gap between the fortnightly payout and the first monthly one, a longer gap.

To me, I feel that the HA is warning you of this impending change and trying to flag up to their tenants the new changes, to prepare for them for receiving their HB directly in a monthly sum and warning that they won't tolerate arrears.

It's probably a quite scary responsibility if it's something a tenant has always bypassed and are used to different payment cycles.