What the Chancellor's Budget means for UC Landlords

Sherrelle Collman, Managing Director of Caridon Landlord Solutions, provides insight into the potential implications of today's Budget.


As part of today’s Autumn Budget, Chancellor Rachel Reeves announced a reduction in the maximum deduction rate from Universal Credit payments, lowering it from 25% to 15% effective April 2025. This move aims to alleviate financial pressure on Universal Credit recipients, helping them retain more income to cover essential costs. While the change is expected to benefit tenants by easing financial strain and supporting rent payments, it may impact landlords who rely on these deductions to recover rent arrears. Sherrelle Collman, Managing Director of Caridon Landlord Solutions, provides insight into the potential implications of this policy shift for both landlords and tenants.

Comment from Sherrelle Collman, Managing Director of Caridon Landlord Solutions:

"The Chancellor’s decision to lower the maximum deductions from Universal Credit from 25% to 15% will bring positive changes for tenants, reducing financial strain and helping them manage essential costs. However, for landlords relying on these deductions to recover rent arrears, there may be concerns about how this will impact their ability to recoup unpaid rent.

At Caridon Landlord Solutions, we recognise that while this change will support tenants' financial stability, it may leave some landlords feeling out of pocket if rent arrears are harder to clear. We encourage the government to consider additional measures or support for landlords in such cases to balance the needs of tenants with landlords’ own financial commitments. This change presents a valuable opportunity to build more sustainable tenancies, and we hope to see continued collaboration between the government, landlords, and support organisations to ensure this policy works for all parties."


<< Go Back