Six Demonstration Projects are being set up to trial direct payments to Housing Benefit claimants living in social sector housing Lord Freud, the Minister for Welfare Reform has announced. The change will come into force under Universal Credit from 2013 and is designed to help claimants make the transition to work and take responsibility for their own finances. 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.” 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 landlord if the tenant gets behind with their rent. Read more on the DWP website.
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