Receiving a direct payment for UC after an Order for Possession
Universal Credit

TheGoodLandlord
TheGoodLandlord
5 Thanks
97 Posts
1 year ago
0

What is the situation? I have read in various places that once a tenancy has ended but the tenant is still in the property that direct UC payments are / could be consider to be 'Mesne' profits. Therefore by accepting payment it might be arguable that a new licence has been created? 

On Shelter's website is says:

"Universal credit regulations are silent on whether mesne profits or use and occupation charges count as rent. This is different to the housing benefit regulations, where they are included as a type of eligible payment.[7]

Universal credit claimants who have been asked to pay mesne profits or use and occupation charges might be able to argue that a licence has been created. Licence payments come under the definition of a rent payment and qualify for the housing costs element."

I am expecting UC to pay me direct for the 'rent' as the tenant has not vacated. I always understood it to be 'rent'. I have a Notice for Possession and I await the bailiffs. I don't want this issue screwing everything up! This 'mesne profits' thing is a real PITA! 

 

 

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