Migration to UC inc Housing Benefit to Housing Cost element!

Fletch69

Hi, I am having difficulty in understanding why I am being charged for under payment of rent to my social landlord, who say I am in arrears!

I migrated to UC from IRESA etc & my wife at the same time with assistance from welfare rights group. We migrated painlessly & successfully in 2 hours. Once I received confirmation messages on both UC journals that all was satisfactory, and as advised, the morning after I telephoned our social landlord and requested that they apply for rent to be paid direct to them. Landlord told me that they made application to UC & I received confirmation message on journal that this would be the case. All of this was done within 24 hrs.

Now, before migration and when Housing Benefit was paying rent direct to landlord, we also (like others no doubt) had to pay water rates to landlord. This was in the sum of £22.50 per month. Then water bills were payable direct to them, United Utilities in this case, but I was in credit with my landlord 'rent account' in sum of £22.50 and never bothered to ask for refund to my bank account. So this credit stayed on rent account for a number of years, until our UC migration came to land.

Then over the next couple of months after migrating, it came to light that somehow my rent account was in the red by £32.64. I enquired with landlord rent accunt section how this can be, and they suggested to leave for a couple of months to see if either HB or UC make a additonal credit to clear this £32.64 (which in fact is not just £32.64 in debit but add to this the original £22.50 which would = actual figure of £55.14).

My query is how, if we migrated and advised landlord to apply to UC for direct payment for 'housing costs', all within 24 hours, can we even be £32.64 in debit, when for years rent account was in creit by £22.50?

I cannot get a straight answer from landlord, who should have more experience of HB & UC. I requested a breakdown to understand where £22.50 credit had disappeared to and also how it came about that we are £32.64 in debit, but all the did was send rent account statement showing the date of migration, followed by a 'demand' letter, to bring account to £00.00.

Although account is only £32.64 in red, what I abhor is the layout of the letter & timing. By this I mean, on same letter, they have a box on right hand side of letter showing figure of (approx) £400.00 in the red, but as landlord knows they about to receive UC payment meaning this £400 would then be the outstanding £32.64 owing. The mention the £32.64 in their 1st paragraph of letter, but the immediate thinking of opening the letter, with that box showing rent arrears of £400.00 is using scaremongering tactics, and until I understand why account is in arrears of £32.64 (or £55.14) I will send them a reply. I just hate the way they waited until account was due payment from UC to make it seem like we owe more. When I reply to them, I shall make this known, but that is my personal battle with them.

I am asking here for help to understand how, if we migrated, and made request for direct payment for UC to pay rent direct all within 24 hours do we owe anything and why is rent account in arrears.

Many thanks for reading and hope I have explained my query easy enough to understand. Has anyone else come across this also and had to pay a shortfall in their rent accounts. Oh & hope you all have a Merry Christmas and an uneventful New Year!

Kimi87

So, the payment schedule for UC is monthly and your rent is due weekly.

Once you apply for UC Housing Benefit ends, apart from the final payment around 2 weeks later known as the run on payment.

You then receive your first UC payment 3 weeks later, and monthly thereafter.

Arrears therefore occur on the account and recur.

Your landlord is entitled to be unhappy with this and ask you to pay the arrears so that each UC payment puts your account one calendar month into credit.

I initially paid three full weeks out of pocket, and an additional week this year as on some of the 5 Monday months my UC wasn't quite due and my account went into slight arrears. My landlord didn't have an issue with this, but I did.

Fletch69

I see. Thanks, Kimi. I still don't fully grab it though. Still seems extremely annoying and unfair that we do our bit as they want yet we are still left out of pocket, no doubt for many, this will be in the £100's and no doubt some in the £1000's. I wonder if there us any way or anybody who has migrated and left with balance of £00.00, or indeed if any in credit 🤔

Many thanks for your reply and explanation 👍 Take care and Merry Christmas (as far as it goes).