Think tank backs NRLA calls for direct payments to landlords
A centre-left think tank has backed an NRLA call, that tenants be allowed to ask for the housing element of their benefits to be paid directly to their landlords.
The NRLA has long campaigned for tenants to have more options when it comes to the way their benefits are administered, for example extending the option of alternative payment arrangements (APAs) to all Universal Credit claimants, rather than just those who are struggling to manage their finances.
In a new report looking at the social security system, the Institute for Public Policy Research (IPPR) has echoed some of these calls.
It wants alternative payment arrangements (APAs) to be offered to all new Universal Credit claimants, including options to:
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make housing payments direct to landlords (known as managed payments),
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adjust the frequency of payments and
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split payments to different members of a household to support budgeting.
It says the way in which benefits are currently paid can make ‘finances harder to manage and increase the risk of debt’ and that in Scotland, where APAs are proactively offered and there is no eligibility criteria, the uptake is much higher.
Local Housing Allowance
The NRLA is also campaigning for a long-term commitment to the uprating of Local Housing Allowance (LHA) on an annual basis, after the announcement that the freeze on rates will be lifted this April, bringing it in line with the 30th percentile of homes to rent.
It wants the Government – and the opposition – to commit to ensuring housing benefits are reviewed each year, so that they continue to be linked to market rents.
The IPPR calling for a similar commitment. Regarding the lifting of the freeze, it said: “We expect that the situation will deteriorate as Local Housing Allowance rates are frozen again.
“We recommend the next government should pin LHA to the 30th per centile of homes for rent (meaning LHA would be adjusted each year to keep up with the lowest 30 per cent of homes to rent in an area), through legislation, offering renters some protection from rising rents; and should conduct a housing support review.”
NRLA policy director Chris Norris said: “Alternative payment arrangements work for landlords and tenants; tenants have the reassurance that their rent will be paid directly from their Universal Credit, and landlords that their tenants will not fall into arrears.
“We are pleased our proposals on welfare and improvements to the benefits system are being backed by an independent think tank, which, like us, recognises the need for a system that is fair to both landlords and tenants.
“Ahead of the forthcoming election we will continue to lobby politicians to promote these simple, workable changes that will support those most in need.”
More information
To read more about the NRLA’s welfare campaign click here.
The NRLA runs a course on Universal Credit. For more information and to book click here.
For practical advice on renting to tenants on benefit and ways to support them click here.
