Tenants on benefits or a low income who are living in the private rental sector have the right to claim money towards their monthly rent payments. Under the current rules, this money is paid directly to the tenant and then (hopefully) passed on to the landlord to cover the cost of the monthly rent payment.
The government is trying to sort out the welfare system by way of the Welfare Reform Bill (currently being debated in the House of Lords), but it is still proposing that the rent cost element of the new “universal credit” is paid directly to tenants, in much the same way as existing housing benefit always has been, unless there are extenuating circumstances to prevent this from happening.
However, there is a large number of consumer and housing organisations trying to persuade the government to rethink this policy and give tenants the choice as to who gets the money. If the government agrees to this amendment, tenants will have a choice as to who receives their housing benefit payment: it can either be paid to the tenant as before, or be paid directly to the landlord.
As a landlord, I can see the wisdom behind this proposal. It makes sense that money designed to pay the monthly rent should be paid straight to the landlord. Not only is this a simpler process, it also removes the possibility that the tenant will fall into arrears with their rent payments through poor money management, and then face eviction as a result, but it remains to be seen whether the government take the same view.
