Is Your Tenant Now Claiming Universal Credit?

Published date31 July 2020
Subject MatterReal Estate and Construction, Landlord & Tenant - Leases
Law FirmGilson Gray
AuthorMs Elaine Wallace

Today I want to talk about a number of changes in recent weeks to the Universal Credit system and how this may affect you as a landlord.

I have previously discussed other positive changes in the letting industry as a result of the impact of Covid-19. The Office of National Statistics (ONS) estimates that claims for Universal Credit in Scotland have risen by 856,500 last month.

All Landlords will need to familiarise themselves with the new system. Many tenants, although still employed will now be eligible for unemployment related benefit support and maybe claiming Universal Credit.

In direct response to the current pandemic, the government has made enhancements to Universal Credit. For the next twelve months, the standard allowance will be increased by '1000 a year, which roughly equates to an additional '80 per month, this is the first time any increase has been made since 2015.

The Department of Work and Pensions (DWP) has introduced a new system, designed primarily to cut out...

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