No regrets, says direct payments landlord

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

A housing association involved in the Government’s direct payment demonstration projects says it is pleased it has taken part as it has given it a better understanding of how to prepare itself and its tenants ahead of Universal Credit.

Family Mosaic who is partnering with Southwark Council for the 12-month project is, alongside five other teams of councils and housing associations, roadtesting the direct payment of housing benefit to tenants ahead of Universal Credit.

Viv Davies, head of collection and credit control at Family Mosaic, said: “We have learnt some really useful information regarding preparation, how we work and how we support tenants on to direct payments. It is showing us the level and type of preparation that is needed.”

Mr Davies was speaking following the release of a press notice by the Department for Work and Pensions (DWP) revealing the findings of a survey conducted at the beginning of the project.

The DWP found that 54% of a 1,639 tenant sample said they were confident receiving their housing benefit payment directly to their own bank account. However, about a quarter (24%) reported that they would need support if housing benefit were to be paid directly to them.

It also found that cash is often the preferred method of bill payment for tenants - even for those with bank accounts. The survey also revealed that nine out of 10 respondents reported having a bank or building society, with 21% opening these after hearing about the demonstration projects.

Alongside the survey – which will go out to the same tenants at a later stage of the project – it reported some general findings common among the five demonstration projects that are currently live across England and Wales.

The findings included that social landlords need to work with tenants early and need to have a better understanding of their financial circumstances and ability to budget; that tenants prefer a range of payment options e.g. standing orders and direct debits but that some could “imagine a situation when housing benefit could be spent to cover unexpected expenses”.

The demonstration projects have encouraged tenants to make rent payments by direct debit without ruling out other options tenants have chosen to use.  

The department added that accounts that allow customers to separate several 'pots' of money are “likely to be helpful”.

Minister for Welfare Reform Lord Freud said: “These findings show most people on low incomes manage their money well and for most tenants the switch to direct payments under Universal Credit will be straightforward.

“Social landlords are also finding that they know less about their tenants than they thought and they are investigating how to build more productive, rounded relationships”

“This work will ensure that the right level of support is in place for those tenants who need it.”