The Government is to start working on an online system that will let private landlords access rents directly from tenants on Universal Credit.
The move seems designed to help Universal Credit claimants, but also to encourage private landlords to accept housing benefit tenants.
Currently, it is widely reported that letting agents and private landlords turn away these tenants because Universal Credit pays the rent money to the tenants as part of an overall package of benefits – but with no guarantee that the money will actually be passed on to the landlord.
Work and Pensions Secretary Amber Rudd revealed at the weekend that a new system will be developed to give landlords certainty that those on housing benefit will pay their rent.
She said: “One third of Universal Credit claimants in social rented housing have their rent paid directly to their landlord. But in the private sector, that number is only 5%.