NRLA gets think tank’s backing for direct payments to landlords

The Institute for Public Policy Research (IPPR) has echoed calls made by the National Residential Landlords Association (NRLA) over direct benefit payments being made to a landlord.

The NRLA has been pushing for tenants to have more control over how their benefits are paid, such as allowing them to request that the housing element of their Universal Credit go directly to their landlords.

This would help tenants avoid rent arrears and eviction, the NRLA says, and give them more security and peace of mind.

Claimants should be offered alternative payment arrangements

Now the IPPR, a progressive think tank, has supported this idea in a new report on the social security system which suggests that all new Universal Credit claimants should be offered alternative payment arrangements (APAs), which include options to:

• Pay housing costs straight to landlords (also known as managed payments)
• Change the frequency of payments
• Divide payments among different members of a household to help with budgeting.

The report argues that the current way of paying benefits can make it harder for people to manage their finances and increase their risk of debt.

It points out that in Scotland, where APAs are proactively offered and there are no eligibility criteria, more people choose them.

‘Alternative payment arrangements work for landlords’

The NRLA’s policy director, Chris Norris, said: “Alternative payment arrangements work for landlords and tenants; tenants have the reassurance that their rent will be paid directly from their Universal Credit, and landlords that their tenants will not fall into arrears.

“We are pleased our proposals on welfare and improvements to the benefits system are being backed by an independent think tank, which, like us, recognises the need for a system that is fair to both landlords and tenants.”

He added: “Ahead of the forthcoming election we will continue to lobby politicians to promote these simple, workable changes that will support those most in need.”

Commitment to the uprating of Local Housing Allowance

The NRLA and the IPPR are also campaigning for a long-term commitment to the uprating of Local Housing Allowance (LHA), which is the amount of housing benefit that private renters can claim.

The government has announced that the freeze on LHA rates will end this April and that they will be aligned with the 30th percentile of local rents.

This means that LHA will cover the rent of the cheapest 30% of homes in an area.

Promise that LHA rates will be reviewed

The NRLA wants the government and the opposition to promise that LHA rates will be reviewed every year and kept in line with market rents.

The IPPR warns that if LHA rates are frozen again, the situation for renters will worsen.

It recommends that the next government should legislate to link LHA to the 30th percentile of local rents and conduct a housing support review.

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