Welfare Reforms Will Limit Direct Payments

Social landlords will only be able to claim direct payments of housing benefit for vulnerable tenants, the DWP has revealed. The Welfare Reform Bill includes a provision for the housing element of the new universal credit, which will combine all in-work benefits into a single payment, to be paid directly to housing associations rather than tenants. But DWP officials have said this new facility could only be used in exceptional circumstances, such as for vulnerable tenants who would struggle to manage their budgets. The clarification is a disappointment for social landlords, who had hoped that the bill would allow them to continue receiving money to cover rent directly. They are concerned making payments to tenants could lead to an increase in arrears that would damage the low interest rates and lender confidence that the sector enjoys. Read more on Inside Housing.