Universal Credit - deposit help!

leigh944

Hi all,

Not entirely sure how to word this correctly, but hoping some clever folk have some good solid advice!

I have been on Universal credit now since February and live in a privately rented flat, which I began renting when I was employed last year. My Universal credit is very minimal, as to be expected, and after rent and bills, I only get around £60 a month to live off (the housing element cap is £292, and my rent is £400 - and its a 12 month contract I cannot get out of, sadly!)

Anyway, my flat contract is up in August, and i am terrified, because I now have 3 weeks to find hundreds of pounds for a deposit and admin fee on a new flat and in my next UC payment, I wont be getting any housing element, as I just paid my last months rent last week!

I have recently got a job, but am not starting until mid August. Therefore, I don't have any money whatsoever to pay for a deposit and admin fees on a new flat, and I am terrified I'm going to be homeless in just a number of weeks! When I rang DWP, they said because I technically class as employed now, I dont qualify for a budgeting loan to help for a flat deposit?!

I am terrified and just wondering if anybody knows anything I dont! Hope I worded this in a way it makes sense!

xylophone

Will you get the deposit back from the old flat and be able to use this as a deposit for the new?

Otherwise, is there any chance of an arranged overdraft with your bank or an advance of salary from your new employer?

Or do you have friends/family who would be prepared to offer a short term loan?

elverson

@xylophone: the OP won't get the old deposit back before they've had to put the new deposit down, so they need funds for both at once.

saajan_12

If you're staying in a privately rented flat on an AST, you can stay on in the flat on a rolling periodic tenancy. Check your contract for any provision about after the initial 12 month fixed term ends. If it doesn't mention anything, you would be on a Statutory Periodic Tenancy. You would have to give 1 tenancy period's notice to leave, and the landlord would have to give 2 months notice and then apply to court and follow a 2-6 month process to remove you.

mrginge

leigh944 wrote: »

...Anyway, my flat contract is up in August...

And what are you expecting to happen?

pmlindyloo

Universal Credit is paid monthly in arrears so should still getting paid a month after you finish work. (This includes the housing element).

Telephone the DWP and ask when your last payment will be and for how much, plus give them your date your employment actually starts.

Even with this you are still going to be short on deposit and fees.

Rosemary7391

Why do you need to move?

leigh944

HI Rosemary,

I need to move because my 12 month tenancy is coming to an end. There's no chance of me being able to stay on because it is a 2 bed flat, and my flatmates moving back in with parents, and also new people are moving in the day after our tenancy ends.

harrys_dad

Many local Councils operate a loan scheme for housing deposits to prevent people from becoming homeless. See if they will help you over the short time you need a deposit before you get your old deposit back.

mrginge

leigh944 wrote: »

HI Rosemary,

I need to move because my 12 month tenancy is coming to an end. There's no chance of me being able to stay on because it is a 2 bed flat, and my flatmates moving back in with parents, and also new people are moving in the day after our tenancy ends.

none of that means you need to move out.

Rosemary7391

mrginge wrote: »

none of that means you need to move out.

I can see why they might want to if that means they get lumped with a stranger in the other room (if separate tenancies) or with liability for the whole rent (if joint - yes, technically both, but realistically the moving out flatmate won't pay half without a fight!).

If it's just a room you need, try something like spareroom.co.uk - as a lodger you'll have less security but you won't have to pay admin fees and might not need as much deposit.