Two more registered social landlords have found rent arrears increased when housing benefit was paid directly to tenants.
London-based Circle 33 and Lancashire’s Five Piers Housing Association are trialling direct payment to tenants, in a scheme similar to the government pilot where a flat rate of benefit is paid to private sector tenants rather than to their landlords.

Circle 33 found that arrears doubled among the 190 tenants in its pilot. But it had greater problems with councils’ benefit administration than in the previous year, which could have contributed to arrears.

Five Piers found arrears for the 35 tenants in its pilots also increased: 23 built up £7500 of debt from June to December 2003.

The news comes a week after London & Quadrant Housing Trust revealed that arrears doubled when its tenants were paid benefit directly (HT 27 February, page 15).

Source

Housing Today