Writing in Landlord Today, Sherrelle Collman of Caridon Landlord Solutions warns that the government’s decision to stop automatic Universal Credit deductions for rent arrears could have significant consequences for both tenants and landlords.

While removing automated deductions without tenant consent is fair, Caridon Landlord Solutions warns that without a clear alternative, landlords may become even more reluctant to rent to Universal Credit recipients, reducing housing options for vulnerable tenants.

Previously, landlords could request deductions of up to 20% from a tenant’s Universal Credit to cover rent arrears. While this system lacked tenant involvement, it offered landlords some financial security. Its removal, without a well-structured replacement, increases landlords’ financial risks and may deter them from renting to benefit claimants.

If deductions are to be assessed on a case-by-case basis, the Department for Work and Pensions (DWP) must be well-resourced to handle claims efficiently. Delays or administrative obstacles could further strain landlord-tenant relationships and make finding private rental properties even harder for those on benefits.

While tenant consent is important, landlords must also have a reliable way to reclaim rent arrears. A balanced, well-supported system is essential to maintaining confidence in the rental market and ensuring Universal Credit recipients can still access housing.