Housing Service - Rent Arrears Policy Section 6
6. Prevention of Rent Arrears
6.1 The Council will use preventative measures and practices, which aim to avoid debts mounting up, including providing regular advice and information to tenants on the amount of rent and the dates by which it is due.
6.2 At the start of a tenancy, the Council will make every effort to ensure that the tenant is informed of all the costs and payment responsibilities associated with their tenancy.
6.3 When signing up a new tenancy, the Council will ensure that those eligible for Housing Benefit complete claims. Where a tenant is responsible for paying some or all of their rent that the rent is paid at the tenancy sign up.
6.4 In addition to the above, the Council will provide all new tenants with information on pending changes from ‘Welfare Reform’ measures (effective from 1 April 2013). The three principal changes that impact on housing include:
- Introduction of direct payments as part of the move to ‘Universal Credit’ – requiring those in receipt of welfare benefit to take
responsibility and make arrangements to pay their rent to the Council from their own bank accounts or other chosen payment
methods. - A limit on the total welfare benefit that households can receive, termed the ‘Benefits Cap’ (leading to reductions in the amount
payable for housing benefit if household income from benefits is over specific limits); and - An ‘Under-Occupancy Charge’ leading to a reduction in the amount paid towards housing benefit by 14% for a spare bedroom and a 25% reduction for two or more spare bedrooms
6.5 At the housing offer and tenancy sign up stage, the Council will advise all new tenants of these changes, whether in receipt of welfare benefits or not.
6.6 The establishment of a good relationship between tenant and landlord at this early stage cannot be stressed too strongly. Preventative measures to be taken will include:
- A pre-tenancy interview with each new tenant;
- Follow up contact will be made with all new tenants within six weeks of the start of their tenancy;
- Wherever possible, and particularly where tenants are considered vulnerable or at risk of arrears, follow up contact will
be made within 2 weeks of the start of their tenancy; - Support provided by appropriate staff and services where this is merited, for example, by Housing Options Staff.
- Personal contact by officers by phone, home visits and letters to encourage tenants to contact the Council at the earliest
opportunity should they experience a change in their circumstances or face difficulties paying their rent; - All correspondence regarding arrears will be written in plain language and will draw attention to the availability of advice and
housing benefit; - Citizens Advice Bureau / money advice referrals and income maximisation checks; and
- Signposting to debt counselling agencies and local Credit Unions where applicable.
6.7 The Council will promote a positive payment culture by including information in the tenants’ handbook, discussing rent payment at viewings, sign-ups, settling in visits and regularly publish articles in the Tenants’ Voice newsletter reminding tenants of the importance of paying their rent.
6.8 Officers will consider tenants and their family’s circumstances through the use of a Risk Assessment Plan to help shape appropriate responses to help them pay their rent and comply with legislative requirements.
6.9 Under Universal Credit, due to be phased in between October 2013 and October 2017, working-age tenants will receive a single monthly payment directly from the Department of Work and Pensions (DWP). This will include support for housing costs.
6.10 Wherever possible, the Council will make the use of “rent direct” payments for tenants in arrears.
6.11 The Council will agree appropriate arrangements for the direct payment of benefits where tenants fall into arrears following agreement of appropriate protocols with the Department of Work and Pensions and the Council.
6.12 The Council will consult with tenants regarding any change to the rent payable and will give tenants 28 days written notice of any increase in rent.