In a significant development, a centre-left think tank, the Institute for Public Policy Research (IPPR), has thrown its weight behind a National Residential Landlords Association (NRLA) initiative calling for tenants to have the ability to request the direct payment of their housing benefits to landlords.
The NRLA, a longstanding advocate for expanding options for tenants in managing their benefits, has emphasized the need for alternative payment arrangements (APAs) to be extended to all Universal Credit claimants. This includes options such as managing housing payments directly to landlords, adjusting payment frequency, and allowing for split payments within households to facilitate budgeting.
The IPPR, in its recent report scrutinizing the social security system, echoes these calls, asserting that the current method of benefit payments can exacerbate financial challenges and increase the risk of debt. Drawing attention to the proactive approach in Scotland, where APAs are offered without eligibility criteria, the IPPR notes a higher uptake of these arrangements.
One of the NRLA’s key proposals is a long-term commitment to annually uprating the Local Housing Allowance (LHA) after the impending lift of the rate freeze in April. Aligning LHA rates with the 30th percentile of homes for rent is a central recommendation, ensuring adjustments each year to reflect market rents. The NRLA urges both the government and the opposition to commit to regular reviews of housing benefits, maintaining their link to market rents.
The IPPR concurs with this perspective, expressing concern about the potential deterioration of the situation as LHA rates face another freeze. It recommends legislation tying LHA to the 30th percentile of homes for rent, providing renters protection against rising rents, and calls for a comprehensive housing support review.
Chris Norris, NRLA policy director, emphasized the effectiveness of alternative payment arrangements for both landlords and tenants. He highlighted the reassurance these arrangements provide tenants regarding timely rent payments, reducing the risk of falling into arrears. Norris expressed satisfaction that their proposals align with the IPPR’s endorsement, emphasizing the shared recognition of the necessity for a fair system benefiting both landlords and tenants.
As the election approaches, NRLA commits to continued advocacy, urging politicians to endorse these pragmatic and impactful changes to support those in need within the welfare and benefits system.