Changing benefits to monthly payments - why is it a problem?

mrs_motivated

BigAunty wrote: »

I'm not aware of any plans that will stop the direct payment of housing benefit to social housing landlords, it's only ever affected private sector landlords. Link, please.

For some reason i cannot seem to post a link (look up anything to do with welfare reform and I will keep trying().

It is introduced along with universal credit, housing benefit will be paid direct to the claimant as part of universal credit. A number Housing Associations and LA are currently piloting this to try and get a measure of the impact.

mrs_motivated

http://homeless.org.uk/Welfare_Reform_2012-13

I think I have managed to get this one to work

Lucee

BigAunty wrote: »

I'm not aware of any plans that will stop the direct payment of housing benefit to social housing landlords, it's only ever affected private sector landlords. Link, please.

It seems Southwark council is already trialing the housing benefit scheme, on their own website it states;

A selection of Southwark Council tenants and Family Mosaic tenants will begin to have their housing benefit paid directly to them. The tenant will then be responsible to pay the total amount of their rent to their landlord.

http://www.southwark.gov.uk/info/200008/benefits/2622/direct_payment_demonstration_project/1

L x

mazza111

Marisco wrote: »

This is what happened many years ago when my ex went from weekly to monthly pay. I've "used" monthly for so long I don't think I could manage weekly now!!!:eek: If they are going to change it, then they will need to give people loans for the transition, they can't just pay someone one week and then expect them to last a month on a fortnights money!! All our bills are geared to monthly payments, and they all come out on the same day, so we know exactly how much is left over for food, extras etc for the rest of the month.

That way worked well for us in all honesty. We then got used to monthly payments. Then when I went to RM we were back to weekly. Will be a bit of a budget to make benefits last 3 weeks tho..

seven-day-weekend

I understand what people have said about budgeting and this only working if the bill comes after you have budgetted for it.

But.....you now have in a week (say) £50 for food and gas/electricity. You put £15 in the meters and have £35 left for food etc. until your next payment comes in a week's time.

Your pay changes to fortnightly. You now have £100 for two weeks. You put £30 in the meters and have £70 left for food etc until your next payment in two week's time.

Your pay changes to monthly (or more likely four-weekly). You have £200 for four weeks. You put £60 in the meters and have £140 left for food etc until your next payment in four weeks or a month's time. So you split the £140 up into four and have £35 a week left, exactly the same as you had when it was paid weekly.

The problem may come with the initial change-over, but after this there is no reason at all why it should not run smoothly.

I think some sort of help/leeway is needed for the changeover but after that I don't see why there need be a problem, other than with those people who will always need help, no matter how often they have their money.

BigAunty

seven-day-weekend wrote: »

...

The problem may come with the initial change-over, but after this there is no reason at all why it should not run smoothly.

I think some sort of help/leeway is needed for the changeover but after that I don't see why there need be a problem, other than with those people who will always need help, no matter how often they have their money.

I like the idea cited before where an employer pays the bulk of the first wage in advance and then the employee pays a small sum back over the rest of the year - that might be helpful with benefits in the switch to monthly payments but the issue might be the faff in getting the debt paid back when they come off benefits where it would be debited automatically.

I think you are right about the govt not having to take into account claimants budgeting skills - the idea is that they have to modify their behaviour, not the policy adapt to current weaknesses.

For Local Housing Allowance, only those the council accept as vulnerable may have the payment made directly to landlord.

So perhaps for the vulnerable, such as those with learning difficulties or addictions, there could be a workaround, too. Not sure what this would be, though?

sniggings

seven-day-weekend wrote: »

I understand what people have said about budgeting and this only working if the bill comes after you have budgetted for it.

But.....you now have in a week (say) £50 for food and gas/electricity. You put £15 in the meters and have £35 left for food etc. until your next payment comes in a week's time.

Your pay changes to fortnightly. You now have £100 for two weeks. You put £30 in the meters and have £70 left for food etc until your next payment in two week's time.

Your pay changes to monthly (or more likely four-weekly). You have £200 for four weeks. You put £60 in the meters and have £140 left for food etc until your next payment in four weeks or a month's time. So you split the £140 up into four and have £35 a week left, exactly the same as you had when it was paid weekly.

The problem may come with the initial change-over, but after this there is no reason at all why it should not run smoothly.

I think some sort of help/leeway is needed for the changeover but after that I don't see why there need be a problem, other than with those people who will always need help, no matter how often they have their money.

Saying £50 for food etc is glossing over the reason why this will not work, first meters are more expensive and all people on benefits are not on meters, you and others seem to be supporting these changes thinking all people on benefits have been on benefits for 20 years, thats not the case, and also that £50 for food etc is also needed for water rates (mine are £10 a week) TV licence, council tax, gas and electric, bus fares to the jobcentre and interviews, paper and ink to print off 6 applications every week for jobs, clothing, some like me had to take out a crisis loan because benefits were slow in processing the claim, I pay back £8.25 a week for that so saying £50 for food etc doesn't give a true picture and if you can manger to get around the problem of budgeting for a bill after it is all ready due, lets hope you don't need to catch an extra bus because the jobcentre are making you sign on everyday.

sniggings

Patronus wrote: »

Forgive me, I haven't read all the posts but I think monthly payments for benefits like JSA are great because they will get people accustomed to how life would be in work, to an extent.

I'm on Carers Allowance and personally don't think I would find it a huge deal if benefits were changed to monthly. I do live very hand-to-mouth, as in, I don't really have any luxuries but still, I know how to budget and deal with money.

try just living on the basic benefit instead of carers allance, then see how you manage.

Chorlie

It would be nice to have the option to have it paid monthly...

Maybe for new claims they could pay monthly, since they have either been in work or new to dealing with money then monthly payment shouldn't be a major issue for them.

I agree if you've been on benefits for a long time and have got used to weekly or fortnightly payment then you shouldn't have to change, but some people have been used to being paid monthly have direct debts monthly, so weekly / fortnightly payments can be as much a pain as monthly payments to other.

Mrs_Arcanum

People also forget that those who get support may have to budget for this as well.

Imagine giving a spendthrift child 3 months pocket money at once. You know they will blow it all in no time, completely forgetting the game they were saving for comes out in a months time. Many of those on ESA will be just like this as we already know to our cost at work with direct HB payments.