“We will continue to listen to people’s concerns, and transform our benefits system to one of fairness, not punishment.”
The move has been welcomed by campaigners.
Nye Jones, head of campaigns at Generation Rent, told Big Issue that reducing tenants’ income without their knowledge was “categorically not right” and had implications for renters’ power to tackle disrepair issues with their landlords.
Labour’s upcoming Renters’ Rights Bill is set to expand the use of rent repayment orders which allow tenants to recoup rent when they have been adjudged to have been failed by their landlord.
Jones argued that tenants receiving benefits should be included in the new legislation to allow them to take action to recover rent.
“It’s categorically not right that landlords can automatically deduct someone’s income without consulting them, especially as renters often resort to withholding rent because of our lack of rights to hold landlords to account over issues like disrepair. We wouldn’t advise withholding rent, but it’s often the desperate situation renters find ourselves in,” said Jones.
Advertising helps fund Big Issue’s mission to end poverty
“The Renters’ Rights Bill will expand the use of rent repayment orders, giving renters the ability to seek compensation from landlords. It’s important that this also applies to all tenants receiving benefits, so that everyone has an avenue for redress. And tenants should also be able to claim a rent repayment order if their landlord is not registered on the new landlord database, to make sure landlords have up to date records on it.”
The government is currently undergoing a wider review into universal credit. Ministers said that the benefits system needs to get people into work, making work pay and tackling poverty.
In April, the universal credit fair repayment rate will also come into force, reducing the cap on how much can be deducted from someone’s benefits from 25% to 15%.
This means approximately 1.2 million households will keep more of their universal credit payment each month, with households expected to be better off by £420 a year on average, the government said.
Benefits will increase by 1.7% from April 2025 following September’s rate of inflation – the lowest rate seen in three and a half years.
But that increase amounts to a real-terms cut as it is likely to be swallowed up by rising inflation, energy bills and other costs that are set to rise in the same month.
Advertising helps fund Big Issue’s mission to end poverty
Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K, said: “It’s welcome to hear that following a legal defeat, the government has committed to review its policy of making automatic deductions from tenants’ benefits when requested by the landlord. This was causing tenants to be pushed deeper into poverty.
“But given that the government has promised a review of universal credit aimed at ending mass dependence on emergency food parcels, tinkering around the edges will not suffice.
“If the government is serious about alleviating poverty, it must set out a plan to increase the rate of universal credit, and ensure that upcoming reforms to health and disability benefits do not plunge disabled people further into hardship.”
Do you have a story to tell or opinions to share about this? Get in touch and tell us more. Big Issue exists to give homeless and marginalised people the opportunity to earn an income. To support our work buy a copy of the magazine or get the app from the App Store or Google Play.
