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Do you have tenants dependant on benefits?

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Do you have tenants dependant on benefits?

The Government is imposing lower caps on household benefits. This is the next stage in their attempts to force more people into work and to ensure they are better off in work. For some families this will have a dramatic impact on their finances and they will have to make changes. If they do not, they may find it difficult to pay their rent. If you have tenant families who are not exempt you are advised to talk to them soon especially if they are inclined to put off difficult decisions. The caps will apply some time after November 7th. DWP are writing to everyone they expect to be affected.

It is expected that the impact of reducing the cap from £26,000 to £20,000 will be significantly greater than under the previous cap. DWP estimate 182 families living in private rented accommodation in Portsmouth will lose benefits. 132 will lose over £50 and 47 will lose over £100 per week. 146 are lone parent families. Some families may be able to change their circumstances to become exempt. In the interim, if the tenant is working towards a solution, they can apply for Discretionary Housing Payments to prevent them falling into arrears. Advise affected tenants to seek advice and support now. Increased levels of support are now available at Job Centres. Portsmouth are piloting free childcare to assist getting people back into work.

This presentation prepared for Portsmouth landlords explains the details. LHA rates are the same in Havant and Gosport and the cap will be applied nationally with higher levels only applicable in London.

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About the author

Martin Silman

Martin began his landlord journey 30 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 12 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.

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