The Government is proposing that the housing cost element of the universal credit should automatically be paid to tenants, except in certain, restricted circumstances.
A large number of organisations representing tenants, consumers, mortgage provides and landlords including Shelter, Citizens Advice Bureau and Money Advice Trust have called on Peers to instead give tenants the right to choose if they would prefer the payments to be made directly to their landlord.
This is based on experience that many tenants feel financially more secure knowing that their rent has been paid,
An amendment, tabled by crossbench Peer, Lord Best, would enable tenants to make the choice for themselves as to who receives their housing payment.
Speaking ahead of the debate by Peers, Chris Town, Vice Chairman of the Residential Landlords Association, said:
“Prior to the election, both parties in the coalition supported tenants having a choice, arguing that it enabled them to better manage their finances, opting, where they felt it was best for them, to have their benefits paid directly to their landlord.
“Evidence clearly shows that tenants themselves would like to be given an opportunity to choose what is best for them, rather than the Government deciding for them.
“Where tenants would prefer payments to be made to their landlord, they do so based on a rational decision that it provides greater security to them, knowing their rent has been paid thereby reducing the prospects of arrears which evidence clearly shows, are increasing.
“We call on Peers and the Government to stand by tenants and give them a choice.”
Lord Best's amendment calling for tenant choice is supported by:
• The Residential Landlords Association
• Tenants and Residents Organisations of England (TAROE)
• Shelter
• Crisis
• Citizens Advice Bureau
• Homeless Link
• Money Advice Trust
• Tenant Participation and Advisory Service, Scotland
• Tenants Information Service
• National Housing Federation (representing housing associations)
• National Federation of ALMOs (arms length managed council housing)
• Community Housing Cymru
• Northern Ireland Federation of Housing Association
• Association of Residential Lettings Agents
• The National Landlords Association
• Council of Mortgage Lenders
• British Property Federation
• Scottish Federation of Housing Associations
