Following a debate on an amendment concerning direct payment of housing benefits to tenants, the government has decided to look at the issue in greater detail to see what the effects of direct payments would be.
Landlords supplying social housing normally receive the housing benefit a tenant is entitled to directly from the government, but many charities representing the rights of tenants, mortgage lenders, and social housing landlords believe that this system is wrong and tenants should be given direct responsibility for their finances and allowed to choose who receives their housing benefit payments. They argue that only tenants classed as “vulnerable” should have their housing benefit payment made directly to the landlord and that in all other cases, the universal credit should be paid directly to the tenant.
The government has commissioned a review of the payment process, which will be led by Professor Paul Hickman from Sheffield Hallam University. The review will evaluate the effect of a direct payment made to tenants in six test areas, and if the results are positive, the government will consider changing the current payment system to allow tenants to take responsibility for where their money is paid.
Personally I think this a good idea. It seems ridiculous that tenants entitled to housing benefit have no say on how their money is paid, and since the amendment apparently had support from Peers from all sides in the House of Lords, it appears that most people are of the same mindset.
What do you think?
