Council housing departments are in line for an £80m windfall after new rules on government subsidies for housing benefits were announced on Monday.
Housing departments stand to get the boost under new Department for Work and Pensions rules, because penalties for mistakes such as overpayment will now be paid out of the council's general fund, rather than the housing revenue account.

Internal ODPM estimates show that Manchester's housing department could gain as much as £4m, Sheffield's up to £2m. The new rules will come into effect from April 2004.

The measures include paying 100% of benefits' value directly to councils, whether or not it is being paid to a council tenant or housing association resident. Councils formerly received a higher subsidy for council tenants.

The Local Government Association welcomed the new rules, which it said tackled a number of longstanding gripes over how councils are reimbursed for housing benefit payments.Frank Newton, benefit consultant for the LGA said: "It's simpler and fairer in quite a few aspects."

  • The benefit fraud inspectorate has slammed JobCentre Plus over housing benefit. It says that out of 49 recommendations made in its 2001 report into the agency, only seven had been met.

    • Source

    Housing Today