October 2018

Yesterday’s budget contained a number of measures designed to mitigate some of the most controversial aspects of Universal Credit. Here’s a quick run through of the most relevant housing and welfare announcements.

The UK Upper Tribunal has found that a First Tier Tribunal erred in law by deciding that a person who sold his former home and rented it back could not receive Housing Benefit. In an important decision, the court ruled that the test of whether someone could continue to occupy their home without relinquishing ownership is one of practical compulsion, rather than legal compulsion and does not necessitate that the lender has started legal action to recover possession of the property.

Regulations were issued in August expanding the existing capital disregards relating to benefit arrears. Capital, resulting from a benefit arrear payable as a result of an error or on a point of law can now be disregarded for the lifetime of the benefit award. Previously, such capital could only have been disregarded for a maximum period of 52 weeks.

Community Housing Cymru, a body representing housing associations and housing mutuals in Wales, has reported that Universal Credit is increasingly leading to social housing tenants falling into arrears. 

An estimated additional 177,000 properties in England are now subject to mandatory House in Multiple Occupation (HMO) licensing as a result of the changes brought about by the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018.

The Scottish Government's 2018 Annual Report on Welfare Reform has estimated that UK Government welfare cuts mean that £3.7 billion less is going to be on social security in Scotland by 2020/21. Additionally, the report find that reduced benefit spending is a key driver of increased poverty rates for lone parent families and families with three or more children.