Direct Housing Benefit Credits 'Could Push a Million into Debt'

A plan to make people financially responsible, by paying their housing benefit directly into their banks rather than to their landlords, risks backfiring, according to social policy experts. A report by the consultancy, Policis, estimates that 29% of the 3.5 million working-age residents in social housing in the UK – about one million people – risk falling into debt if their benefits are paid to them directly in a single monthly payment. Nine out of 10 social housing residents opt for their benefit to be paid to their landlord, while receiving other benefits weekly or fortnightly, to help them manage their finances.  Read more on the Observer website.

Quarter Of Tenants Need Help with Universal Credit

Around a quarter of social tenants will need support with the switch to universal credit if they are to avoid financial risk. A study conducted by consultancy Policis for the National Housing Federation has identified a ‘significant proportion’ of social tenants who will need help with the shift. Under universal credit a range of existing benefits will be combined into a single payment. In most cases this will be made monthly, and the housing element will be paid direct to the tenant rather than going to their landlord. The Policis report says this will cause significant problems for low-income households that are used to budgeting on a weekly basis.  Download the report from the NHF website.

Tenants 'Not Confident' About Direct Payments

One in three social housing tenants on benefit are not confident they can keep up to date with rental payments if they receive their benefit direct, a report has found.  Optimising welfare reform outcomes for social tenants, published by the NHF and consultancy Policis, draws on a range of data to look at the potential impact of universal credit.  The report found 35 per cent of social tenants on benefit are not confident they can pay their rent once they receive payment direct.  More than half (54 per cent) feel a shift to monthly benefit payment would make it more difficult to manage their budgets.  Eight in 10 (79 per cent) tenants said they will find it more difficult to manage money monthly while 86 per cent believe it is better for benefit to be paid to the landlord.  A total of 14 per cent of tenants do not have a bank account with a direct debit function, while 5 per cent have no bank accounts at all.  Download the report form the NHF website.