Social landlords taking part in trials where tenants are paid their benefits direct are reporting arrears of around double the norm.
Their experiences will be of interest to private landlords, who have long protested that tenants receiving Local Housing Allowance do not always pass the rent money on but spend it on other things.
Data from the Department for Work and Pensions showed that 6,220 tenants were paid directly in the first four months of the trials. Arrears ran at a rate of 8%.
A total of 316 tenants have been switched back to payment of benefit to their landlord, with the projects still having eight months to run.
The trials are being run ahead of the introduction of Universal Credit next year, where tenants of both social and private landlords will be paid direct.
Comments
Hi
As a landlord who twice gave accommodation to benefit tenants, never again. it cost me so much to get them out and the council were no help.They said in one case if they paid to me directly if it turned out that the tenants were not entitled to benefit I would have to pay it all back but they were assessing them not me !
just a few points
The money is paid from the council to the tenant.
It is neither of their money
The landlord is being paid for providing a roof over the tenants head because the council cannot.
Why O why not pay it straight to the landlord as it is his money not anybody else's.
if somebody is not capable of organising their money how can you expect them to suddenly be in control of a large sum of money each month. It is too much of a tempertation to spend it on other things instead of the most important thing a roof over their heads.They know the landlord is not able to get them to leave without a lot of effort and expense.
If landlords are not treated better many more will say no more benefits and then there will be a real big problem.
Sorry gone on a bit but having let out for many, many years
And my parents before me I can see trouble ahead if people are not realistic.
Merry Christmas to you all and sense in 2013
Take care Regards Anne Russell
Well, not really a surprise to the majority of private landlords who are used to rent arrears well in excess of 8% where tenants are paid directly.
The assumption that UC will be paid directly in all cases, however, is rather misleading. Lord Freud at the NLA conference a few weeks ago stated quite clearly that rents WOULD be safeguarded where there are potential problems, and that the only question marks related to the period of time before safeguards were implemented.
The question of how much of UC would be safeguarded, however still leaves a big question mark. UC payments as we understand the current situation will not have a specific proportion identified as being housing benefit.