Direct Payment of Housing Benefit: What Do Claimants Think?

Peter Kemp

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The government is reforming the way that Housing Benefit is paid in the private rented sector. Currently, this benefit is usually paid directly to private landlords rather than claimants.

But from 2008, Housing Benefit will be paid to private rented claimants unless they are vulnerable or in rent arrears.
The government would also like Housing Benefit payments to be made to social housing claimants rather than their landlords.
The government hopes that paying Housing Benefit to claimants will promote personal responsibility for their rent, empower tenants to budget for themselves and thereby help them to prepare for work, and facilitate financial inclusion and payment modernisation.
Critics argue that paying Housing Benefit to claimants will result in higher levels of rent arrears and, ultimately, homelessness.

But what do claimants think of these two payment methods?

This report explores the issue from a claimant perspective, drawing on interviews with private and social housing tenants.

It suggests that people are happiest with their current payment method, but that the proposed changes may not be as problematic as some commentators have suggested.

ISBN: 978-1-905018-468 / 978-1-905018-47-5 Order no: 244 Published: May 2007

Contents

Summary

1. Introduction

2. Managing money and paying bills

3. Paying the rent

4. Housing Benefit payment preferences

5. Making the transition to claimant payment

6. Conclusions