People who claim Universal Credit in Scotland will be able to have rent paid direct to landlords as well as more frequent payments, when the Scottish Government makes use of new devolved powers.
Social Security Minister Jeane Freeman announced the widely expected changes aimed at mitigating the impact of the controversial benefit by using the social security powers being handed to Scotland, for the first time.
The flexibilities being planned will enable the housing element of the benefit to be paid direct, addressing concerns that some of those reliant on Universal Credit (UC) might fall into arrears, if housing costs are not covered before other expenses. Ms Freeman said this facility would apply to tenants in the private rented sector as well as those in council and social housing.
Meanwhile new applicants who live in areas where 'Full Service' UC has been rolled out, will be able to get payments twice monthly instead of the monthly payments which are made under the current UK-wide system, to help them budget.
Ms Freeman said: “As part of the social security consultation exercise last summer, we heard direct from people that paying the housing element of Universal Credit direct to landlords and receiving more frequent payments would be two important improvements to the DWP approach. These are issues that people have repeatedly raised with us, highlighting the problems the current system can cause for budgeting .
“I am delighted therefore that I am able to address these concerns and go further, by extending the direct payment option to tenants with private landlords, and deliver these flexibilities for people in Scotland.
“People claiming Universal Credit want to have a choice about how the housing element part of the payment is paid – we have listened to that wish and are now taking action to make sure it happens as quickly as possible.”
John Blackwood, Chief Executive of the Scottish Association of Landlords, said he welcomed the changes and added: "This should help protect tenancies and minimise rent arrears which will benefit both the tenant and the landlord. It is only fair that private sector tenants have the same option to choose direct payments as tenants in the social sector.”
Speaking to the BBC, Ms Freeman also claimed the Scottish Government was working to change the rule which states UC for all adults in a household will only be paid to a single named individual. This has caused concern, particularly from women's groups concerned that it can enforce dependence on a male partner. Ms Freeman said: "We're in discussions with DWP about how they can deliver that change for us. So I'd hope that that further change will be something that we'll be able to do in the near future."
The DWP did not confirm that such discussions had taken place, but a spokeswoman said: “We are working closely with the Scottish Government to ensure a safe transfer of the welfare powers contained in the Scotland Act 2016, and a seamless transition for people in Scotland who rely on the benefits being devolved.”
The Scottish Government will now consult on the draft regulations needed to underpin changes to the way UC operates in Scotland.
Rob Gowans, Spokesperson at Citizens Advice Scotland said the charity had campaigned for the changes planned by ministers, adding: " This is an excellent first step in using new powers to create a fair, equal and responsive social security system for Scotland."
Graeme Brown, director of Shelter Scotland, said: “It’s welcome news that both social renters and private renters will have the option of having the housing support element of Universal Credit paid directly to their landlords. This is a more sensible, personalised approach than the current one-size-fits-all approach.
“The idea of bi-monthly payments instead of monthly is also a helpful move forward. The key now is to ensure a smooth transition to a system that delivers payments without delays.”
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