Who Gets Your Housing Benefit ?

ILW

BigAunty wrote: »

Sorry, do you mean a five fold increase in arrears?

I haven't studied the results of the pilot so don't know the stats at all.

However, some arrears will be the result of vulnerabilities of the tenants who don't have the mental capacity to do the paperwork or basic budgeting and hopefully the pilots will help refine the process to identify these tenants and put the support in place for the future national launch.

Other arrears could possibly come as the result of attitudes and behaviours of the tenants who shun accepting responsibility for the simple domestic tasks associated with basic bill payments that most private tenants and homeowners can manage. Over time, these matters might improve when the culture around personal budgets becomes more entrenched and passivity discouraged.

Are there really that many people out there that cannot figure out that they need to pay rent with the money given to them? I would assume anyone that disabled would have some sort of carer or social worker.

BigAunty

ILW wrote: »

Are there really that many people out there that cannot figure out that they need to pay rent with the money given to them? ...

Yes, we often see posts on the housing forum from tenants, both private and social housing, who for some reason have not prioritised the payment of the rent. There was a recent post from a student with kids entitled to HB who admitted she got into arrears from bad budgeting and who seemed a bit surprised that her landlord would not give her a good reference.

ILW wrote: »

I would assume anyone that disabled would have some sort of carer or social worker.

Very much doubt that every disabled person would have a carer (as this depends on their rate of DLA as to whether they are entitled to a carer) and as there are over 3 million people claiming DLA (don't know how many are adults) and probably 2 million plus people of working age claiming ESA/IB, I doubt that many have a social worker.

This is some examples from a local council about who they class as vulnerable to getting into arrears, its not just the disabled.

Examples of Vulnerability


Reasons that we might pay the landlord instead of the tenant might be because the tenant:

• Has a medical condition (affecting their mental or physical health)
• Has a learning disability or a physical disability
• Does not speak English as their first language
• Is going through some changes which means the tenant needs some extra support
• Is dealing with an addiction (to alcohol or drugs)
• Has severe debt problems e.g. CCJs, bankruptcy, or a bad credit rating preventing them from having a bank account.

Own_My_Own

BigAunty wrote: »

Sorry, do you mean a five fold increase in arrears?

I haven't studied the results of the pilot so don't know the stats at all.

Yes. According to Radio 4 today, all 6 trial areas have had at least one third more people with arrears. While Wakefield have 5 times the normal amount of people in arrears.

http://www.bbc.co.uk/news/uk-21756567

Arrears fears
Figures obtained by BBC News show that arrears among tenants of Wakefield and District Housing in West Yorkshire have increased from an average of 2% to 11% on the pilot projects.



Also just saw this - foster carers and those in the armed forces are now exempt from the Bedroom Tax

http://www.bbc.co.uk/news/uk-politics-21760365

BigAunty

Own_My_Own wrote: »

Yes. According to Radio 4 today, all 6 trial areas have had at least one third more people with arrears. While Wakefield have 5 times the normal amount of people in arrears.

http://www.bbc.co.uk/news/uk-21756567

From memory, I believe the pilot areas for private tenants receiving HB when LHA was introduced also saw large spikes in arrears and was extremely unpopular with landlords but it was still rolled out.

I assume the point of the pilots is to proactively identify the issues that lead to rent arrears and see how they can be ironed out before the national launch.

I do believe that tenants should receive their HB directly - budgeting is a personal not state responsibility - but that I am keen that there are proper procedures in place to identify and assist the vulnerable (and I don't mean those who are merely reluctant to take responsibility to pay the landlord as it seems a bit of hassle).

Own_My_Own

BigAunty wrote: »

From memory, I believe the pilot areas for private tenants receiving HB when LHA was introduced also saw large spikes in arrears and was extremely unpopular with landlords but it was still rolled out.

I assume the point of the pilots is to proactively identify the issues that lead to rent arrears and see how they can be ironed out before the national launch.

I do believe that tenants should receive their HB directly - budgeting is a personal not state responsibility - but that I am keen that there are proper procedures in place to identify and assist the vulnerable (and I don't mean those who are merely reluctant to take responsibility to pay the landlord as it seems a bit of hassle).

But the councils are also saying it is costing them money as 90% of tenants will not set up direct debits, and they are being advised not to.



As well as noticing a large increase in arrears, all the pilot projects have seen increases in the costs of getting the rent from the tenants. Some projects have had to double staffing costs as many tenants have been unwilling to pay by direct debit.

In Bron Afon, approximately 90% of tenants do not pay by direct debit.

"Direct debits are not a good way of paying if you are on very low incomes," says Duncan Forbes.

"If a direct debit is due and there is no money in the bank, it can cost you £30-£40 as a penalty."

mazza111

ILW wrote: »

Are there really that many people out there that cannot figure out that they need to pay rent with the money given to them? I would assume anyone that disabled would have some sort of carer or social worker.

Well the lass that came on here looking for advice didn't have a support worker any more after everything was cut. I'm sure there are many like her who are in a panic about this right now.

Own_My_Own

mazza111 wrote: »

Well the lass that came on here looking for advice didn't have a support worker any more after everything was cut. I'm sure there are many like her who are in a panic about this right now.

Taken from BBC News.



Southwark Council predicts it will incur £14m in arrears if direct payment is introduced to all their tenants.

"People have clocked up arrears who were not in arrears before," says Duncan Forbes, chief executive of Bron Afon.

"And the worry is will they panic, will they stop paying, will they feel they've lost control and end up being evicted."

One tenant failing to cope is Margaret Tonks, a single mother from Broseley, Shropshire.

She approached her local Citizens Advice Bureau (CAB) after using some of her housing benefit to pay for gas and electricity and has now built up arrears.

"I do not know why they moved me to the new scheme," she said. "I hardly have enough money to live day-to-day.

"By them paying the money directly to me it created temptation to use it for other things which has resulted in me being in arrears and possibly being evicted. "

seven-day-weekend

Own_My_Own wrote: »

Taken from BBC News.



Southwark Council predicts it will incur £14m in arrears if direct payment is introduced to all their tenants.

"People have clocked up arrears who were not in arrears before," says Duncan Forbes, chief executive of Bron Afon.

"And the worry is will they panic, will they stop paying, will they feel they've lost control and end up being evicted."

One tenant failing to cope is Margaret Tonks, a single mother from Broseley, Shropshire.

She approached her local Citizens Advice Bureau (CAB) after using some of her housing benefit to pay for gas and electricity and has now built up arrears.

"I do not know why they moved me to the new scheme," she said. "I hardly have enough money to live day-to-day.

"By them paying the money directly to me it created temptation to use it for other things which has resulted in me being in arrears and possibly being evicted. "

So she did not pay her rent but instead used the money on gas and electricity.

And that is the Council's fault how, exactly?

What did she think would happen if she did not pay her rent? What does she think happens to others who don't pay their rent or mortgage?

A friend of mine said she did not agree with Benefits being paid monthly because some people would spend it all at once. Unless they have learning disabilities or a mental illness, or similar, whose fault is that exactly? A couple of months of having no money for a few weeks should soon straighten them out.

With many people it's because they have never had the money in their hand they don't think of it as real money. It is really most dispiriting that people have this mindset.

It might be a good idea if there were community courses to teach people how to budget, hopefully people would use them.

System

Own_My_Own wrote: »

As has already been stated on here twice, tenents of private landlords already get their HB paid to them not the landlord. This new scheme is for social tenants.

I am a private tenant and pay my rent on the first of every month. I have also never been in arrears.

Same here. Its all set up by standing order, LHA goes into that account and i top it up before the end of the month, goes out on the 1st. Never missed a payment. If i didn't pay my rent i'd be homeless...so its kind of a priority :eek:

ILW

Own_My_Own wrote: »

Taken from BBC News.



Southwark Council predicts it will incur £14m in arrears if direct payment is introduced to all their tenants.

"People have clocked up arrears who were not in arrears before," says Duncan Forbes, chief executive of Bron Afon.

"And the worry is will they panic, will they stop paying, will they feel they've lost control and end up being evicted."

One tenant failing to cope is Margaret Tonks, a single mother from Broseley, Shropshire.

She approached her local Citizens Advice Bureau (CAB) after using some of her housing benefit to pay for gas and electricity and has now built up arrears.

"I do not know why they moved me to the new scheme," she said. "I hardly have enough money to live day-to-day.

"By them paying the money directly to me it created temptation to use it for other things which has resulted in me being in arrears and possibly being evicted. "

She needs to grow up and take some responsibility. Maybe a few high profile evictions would focus some minds.