Government admits it has not assessed whether Housing Benefit rules are working

The government has admitted it has made no specific assessment of whether the current rules on direct Housing Benefit payments to landlords are effective.

In a written parliamentary question, Labour MP Stephen Timms claimed the government does not hold data showing how much Housing Benefit claimants owe their landlords in unpaid rent.

The news comes as the government has frozen Local Housing Allowance (LHA) rates for 2027-28.

No specific assessment

In a written parliamentary question, Liberal Democrat MP Joshua Reynolds asked: “What assessment has the government made of the potential merits of extending the circumstances in which Housing Benefit may be paid directly to landlords where tenants are in rent arrears”.

In response, Labour’s Sir Stephen Timms said: “Housing Benefit payments must be made to the landlord where a claimant has rent arrears equivalent to eight weeks or more. This is to ensure that action is taken to protect the tenancy before the landlord has the right to seek possession.

“The Department has not made a specific assessment of the effectiveness of the current arrangements or the potential merits of extending the circumstances in which Housing Benefit may be paid directly to landlords.

“Local authorities already have powers to make direct payments in a range of circumstances, irrespective of the level of rent arrears. For example, where a claimant is likely to have difficulty managing their financial affairs, is unlikely to pay their rent, or where doing so would assist them to secure or retain a tenancy.”

No plans to make changes

Mr Timms added: “The Department does not hold data on claimant rent balances with landlords for Housing Benefit. Local authorities only record information on claimant entitlement and HB awards made including whether a direct payment was made to a landlord.

“We do not hold any data telling us whether the claimant then subsequently used the Housing Benefit they have received to pay the rent or the rent balance held.

“The Department currently has no plans to make changes to this policy.”

The news comes as the government announced in the Budget LHA rates will remain frozen.

The government has defended its decision, pointing to the 2024 increase in LHA rates and arguing that broader measures will help renters in the long term through the Renters’ Rights Act.