A new report from the Chartered Institute of Housing (CIH) for the Joseph Rowntree Foundation (JRF) shows that most tenants make rent payments the first priority, and that any rent arrears are often linked to administrative problems rather than wilful non-payment.
Direct Payment of Housing Benefit - What do Claimants Think? shows a mixed response to Government plans to pay Housing Benefit direct to claimants. It identifies that tenants with an organised approach to money management should adjust well to direct payment of Housing Benefit, but others will need support and money management advice in order to make the transition.
The research is based on in-depth interviews with tenants of private and social housing and reveals that many people, regardless of tenure, age and family circumstances, are content with payment of Housing Benefit to the landlord as it avoids 'hassle,' provides peace of mind and avoids the need for them to become involved in case of errors or non payment.
Their attitude to moving to direct payment depends on their overall approach to managing their finances.
Claimants who tended to have a more organised approach to money management thought the transition to receiving Housing Benefit and paying full rent themselves would be straightforward. Individuals with a more chaotic approach expressed anxiety about the 'hassle' involved and, in a minority of cases, about spending the Housing Benefit consciously or inadvertently on other things. This highlights the need for support to make the transition to claimant payment in terms of adequate money management and budgeting advice and regular and clear statements of Housing Benefit received and rent payments made.
The report also shows that using bank accounts and automated methods of payment could reduce the 'hassle' factor and help make the transition to direct payment smoother.
Claimants who already receive direct payment appreciate the control they have over the Housing Benefit and the rent payment process, and the fact that they can conceal their benefit status from their private landlord, so allowing greater housing choice.
Professor Peter Kemp, who led the study, said: "Most people will be able to adjust to having Housing Benefit paid to them instead of their landlord, but safeguards need to be in place for the minority of claimants that do have problems."
The Welfare Reform Bill received royal assent, opening the way for a two-year pilot of the controversial docking of housing benefit for antisocial and uncooperative tenants. The pilot will involve eight local authorities and start in November 2007.
Lee Dribben, Chair of the Residential Landlords' Association, attacked the plans as unworkable and liable to discourage landlords from accepting Housing Benefit claimants. Mr Dribben, who is a landlord in Blackpool, one of the pilot areas, argued that the plans would provide some private landlords with another reason for avoiding Housing Benefit tenants.
The Residential Landlords' Association has already warned its members to turn away recipients of the new local housing allowance, which will be rolled out nationally next year. Housing Benefit claimants represent between 20% and 25% of all private sector tenants.
Both the National Housing Federation and the Chartered Institute of Housing have criticised the proposed sanctions.
