Arrears hike after April benefit cuts

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Social landlords are already seeing a rise in tenant arrears after the Government reversed the freeze in non-dependent benefit deductions (NDD) this April.

NDDs are reductions in housing benefit to tenants who have a 'dependent' living with them, usually a child, daughter or elderly relative over 18.

Under Labour, non-dependant deduction rates were frozen. This meant that the reductions didn't increase in line with eligible rents and council tax since 2001.

However, the current Government has decided to reverse the freeze in "three stages", starting from April 2011, to the rates they would have been if they had been fully uprated since 2001.

The measure, says the Government, is "intended to provide a fairer deal for taxpayers and provide an expectation that adults make a reasonable contribution towards their housing costs".

Chloe Fletcher, policy manager at the National Federation of ALMOs (NFA), said the increase in reductions is already leading to tenant arrears.

At a 24housing magazine-organised event on Universal Credit yesterday, she said: "I do know a number of ALMOs are tracking those cases at the moment and people have started seeing an increase in arrears already, so this is the start of a lot of things to come and it's a bit worrying. Especially considering the non-dependent deduction increase is going to carry on for a couple of years  to catch up with where we should have been had there not been a freeze previously."