New Tenancy Being Looked At For Direct Payments Switch

A new type of agreement allowing tenants to pay the housing benefit element of their rent directly to their landlord should Universal Credit proposals materialise, is being considered by a Salford housing association. From 2013, the Government wants to pay the new Universal Credit – which will include housing benefit – directly to tenants in a single monthly payment.
Currently social housing tenants get to choose whether they want their housing benefit paid directly to their landlord. City West Housing Trust – which owns and manages over 14,500 homes – said it is working with payment specialist allpay to investigate introducing a ‘synchronised account’ that would give tenants the option of paying their benefit through a third-party banking system. Tenants would be given the option of signing the new tenancy agreement which would see an instant, automatic benefit payment being made directly to the company when the Universal Credit payment lands in their account each month. Read more on the allpay website.