The Government has now decided to review the impact of paying housing benefit directly to tenants, rather than to landlords

As part of the proposed changes to the benefits system, Ministers had argued that paying the housing element of universal credit directly to tenants should be the default position except where a tenant is deemed vulnerable. As part of this process, the Government is set to announce six demonstration project areas to test payments to tenants.

Speaking to Peers in the House of Lords following a debate on an amendment tabled by crossbencher Lord Best proposing that all tenants be given a choice over who receives their housing benefit, the Welfare Reform Minister, Lord Freud has now announced that the Government is to commission a review, to be led by Professor Paul Hickman from the Centre for Regional Economic and Social Research at Sheffield Hallam University, to evaluate the effects of direct payments to claimants in the six demonstration project areas.

The amendment had the support of all Peers who spoke on it from all sides of the House of Lords.

Responding to the announcement, Alan Ward, Chairman of the Residential Landlords Association said: “Given its commitment to personal responsibility it seems remarkable that the Government has so far denied tenants the ability to choose how their housing benefit is paid.

“We will continue, along with the other groups representing tenants, social housing providers and mortgage lenders to champion the rights of tenants to have a choice, and we welcome the Ministers decision to establish a review of direct payments.”