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Powers for landlords to collect rent from benefit payments to be re-examined

ended 26. February 2025

A controversial system that automatically approves landlord requests to deduct tenants’ benefits to pay rent arrears and ongoing rent payments is being re-examined, Work and Pensions Secretary Liz Kendall has announced. It comes amid concerns that the system – aimed at helping people avoid issues with their landlords such as eviction - may actually be pushing the poorest into debt. Currently, a computer program automatically approves landlord requests to deduct up to a fifth of someone’s monthly Universal Credit payments for outstanding rent repayments without them being consulted by either their landlord or DWP. The department will now look at this process and consider better ways of ensuring landlords get the rent they are owed in a fair and proportionate way while benefit claimants are protected from falling into debt. Newspage asked brokers and property experts for their thoughts, below.

4 responses from the Newspage community

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Steve Humphrey
Adviser & Founder at The Mortgage Pod
With sustained sweeping changes to taxation and regulation for landlords, many are leaving the market and this will eventually lead to a shortage of privately rentable properties. This would inevitably have to be supported by increased social and council housing of which there is already short supply. Anything that will encourage good landlords to continue renting their properties has to be a positive thing, however the solution mustn’t penalise the already struggling tenants and must also offer good value for money to taxpayers who will ultimately be footing the bill.
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Michelle Lawson
Director at Lawson Financial
Some tenants don't want to be in control of such monies and want to pay the landlord directly. This used to be possible on request. This does need to remain available and, given the housing crisis and the poor relationship between landlords and councils due to their poor practices, they should be trying together with landlords to help some of the most vulnerable in society. This starts with the responsibility of maintaining a roof over your head with either your personal funds or that from the benefit system. Landlords are being attacked enough and quite simply, if the rent is not paid it pushes the landlord into financial difficulty resulting in eviction and clogging up the court system as they cannot pay the mortgage without the rent. The eviction then puts further pressure on the council to rehome the tenants. Landlords cannot continue to absorb the results of poor Government policy without listening to the people on the ground. They have been told and warned enough times now.
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Jamie Elvin
Director at Strive Mortgages
The government’s review of automatic rent deductions is overdue, but balance is key. Tenants need protections, but landlords can’t be left footing the bill for unpaid rent. When landlords struggle, evictions rise and councils face more pressure. Many tenants prefer paying landlords directly, yet red tape and poor council-landlord relations make it harder. Reform must ensure fair rent collection while protecting the vulnerable—because when landlords lose, tenants do too.
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Dariusz Karpowicz
Director at Albion Financial Advice
Landlords' direct rent powers face new scrutiny as government steps in. Work and Pensions Secretary Liz Kendall has announced a review of the controversial system that automatically siphons up to a fifth of Universal Credit payments to cover rent arrears - all without tenant consultation.
The review strikes at the heart of a delicate balance in Britain's rental market. While landlords rightfully need reliable mechanisms to collect what they're owed (particularly as they face increasing regulatory and tax pressures), the current system may be pushing vulnerable tenants deeper into financial holes. A sensible approach must acknowledge both landlords' legitimate business interests and the precarious position of benefit recipients, ensuring neither group bears an unfair burden in a housing market already under significant strain.