Lord Freud told to explain ‘unique circumstances’ of direct payments concession

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

A Labour MP has called for an urgent debate or statement from Lord Freud as to why he has let tenants in Northern Ireland continue to have housing benefit paid directly to their landlord under Universal Credit.   

From next year, Universal Credit will replace the six income-related benefits – including housing benefit, jobseekers’ allowance and tax credits – with single monthly payments paid directly to claimants.

However, social tenants in Northern Ireland will continue to have their housing benefit paid directly to their landlord after a concession was agreed between minister for welfare reform Lord Freud and social security minister Nelson McCausland.

Unlike the rest of the UK, households in Northern Ireland will also be able to split Universal Credit payments and will be able to receive payments twice a month. For England, Scotland and Wales, these will be exceptions that claimants will be assessed for.  

Now, Lord Freud has been asked by Labour MP for Halton, Derek Twigg, to explain why he has agreed to the concession and to explain the “unique circumstances” for the decision.

Mr Twigg said in Parliament last week: “May we have an urgent debate or statement from a Minister to explain why the Minister with responsibility for welfare reform, Lord Freud, has agreed that in Northern Ireland payment of housing benefit directly to landlords will continue, while in the rest of the country payment must be made directly to tenants—despite all the problems, highlighted by many people, with that—and to explain the unique circumstances for this decision?”

The leader of the House of Commons Andrew Lansley said: “I will of course talk to my hon. Friends at the Department for Work and Pensions, so that they reply specifically to the hon. Gentleman, but my understanding is not that the changes to Universal Credit rule out the possibility of direct payment, but merely that it is important that they be assessed and examined to ensure they are appropriate. Wherever possible, we want those in receipt of Universal Credit to feel like they are in work. We do not want to change the sense of that, so that they get their pay and it is their responsibility to live within their means.”

The Scottish Federation of Housing Associations (SFHA) has called for greater flexibility in the introduction of welfare reforms following Northern Ireland’s agreed concessions, but says the current constitutional settlement means Scotland does not have the powers to replicate the Northern Irish changes.

The introduction of Universal Credit in Northern Ireland will now take place from April 2014 rather than October 2013 as had been originally planned, allowing them more time to prepare for implementation