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Social sector tenants responsible for paying landlords direct

Lord Freud is calling for local authorities and housing associations to get involved by volunteering to play a key role in the Projects.

Lord Freud said: "It is vital that we close the gulf between being out of work and having a job. And this means benefit claimants have to manage their own finances, including paying rent – so when they do find work it’s easier to leave the safety of the welfare system.

"Increasing the number of social rented sector tenants who are in work can only be a positive thing. For tenants, work can bring increased wealth, stability, improved health and well-being and can encourage people to have a greater stake in their communities. For landlords, higher employment can mean better neighbourhoods."

Although the majority of claimants renting in the social sector will be responsible for making direct payments to their landlords, vulnerable people and pensioners will continue to have their housing costs paid direct to their landlord.

The Projects will also test how to support tenants and landlords on the introduction of direct payments – such as offering budgeting advice to tenants and placing a trigger which switches the housing payment to landlords if the tenant gets behind with their rent.

Local authorities and housing associations interested in volunteering to take part in the Demonstration Projects should email Demonstration.Projects@dwp.gsi.gov.uk

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2 thoughts on “Social sector tenants responsible for paying landlords direct

  1. What planet do these politicians live on? Some tenants, especially teenage mothers when faced with several hundred pounds in their bank account is too much of a temptation if they have never been used to dealing with a high volume of money. In a nation where people are allowed to play the ‘victim’ if they screw up, private landlords have footed the bill, now it seems it’s the social rented sector’s turn. The government are taking a gamble too far, especially amid a housing crisis!

  2. John Power says:

    I’m sure we are not the only eviction company seeing a high increase in eviction notices. The private sector has long has its problems with government policy, but the social sector is already overstretched and experienced its share of cuts to their budget. Rents in the social rented sector are due to increase, it’s only a matter of time until increasing arrears will take it’s strain on both social and private rented sectors.

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