Freud: Direct Payments Will Not Reduce Incomes

Lord David Freud said he does not expect landlords to ‘suffer sudden losses of income’ as a result of direct payment of benefit to tenants.  The welfare reform minister made the claim in a speech at a Capita conference, despite demonstration projects showing a doubling of arrears.  Lord Freud said: ‘Paying housing costs direct is an integral part of universal credit and an important way of helping people to manage their own finances and become more independent.  But I know there is some concern that the switch may cause a ‘mass’ of claimants to fall into arrears at the onset. But that’s not going to be the case, the fact is that claimant transitions will be gradual over a four year period, there will be no big bang effect and we do not expect landlords to suffer sudden losses of income.’  Read the full speech on the DWP website.