Under the next wave of welfare reforms, new rules set to be introduced next year, mean that the housing benefit allowance of the new Universal Credit system, will not be paid directly to landlords.
Instead the Government proposes that all payments will be paid directly to tenants, even if they are vulnerable or in arrears!
This will not only expose the landlord to the threat of tenant rent default, it will increase financial pressure on all parties involved and the possibility of repossession proceedings if the rent is not passed over to the landlord.
The proposed welfare reforms will also increase the likelihood of landlords refusing to take any further applications from DSS/LHA/Housing Benefit tenants, in the future as well as bringing to an end existing tenancies, further increasing the pressure on local councils and housing associations, who under the same proposals, will also not be able to request direct payments for non paying tenants.
The Government needs to take on board UK landlords views, that tenants who receive housing benefit directly and who do NOT pay their rents are not financially responsible and therefore it should be allowed that rents can be paid directly to their respective landlord, when tenants are vulnerable or in arrears, as per the current rules.
This is a common sense and a logical solution for all concerned – Pay rent direct to landlords where it is needed please!
Responsible department: Department for Work and Pensions