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Housing Benefit Rules Relaxed

By: Sarah Hutchinson

From April 2011, the new ?400 a week benefit limit was to be enforced the Government has now decided to wave this until January 2012. The parliamentary social security advisory committee has warned that "some changes will have far reaching adverse consequences".

The committee's annual report was revealed on the day Work and Pensions Secretary Iain Duncan Smith announced planned amendments to LHA benefit system including new weekly limit. The plans includes changes to how Local Housing Allowances (LHAs) are calculated. Rather than being a median figure of local rents it will now be reduced by one third.

National Landlord Association is calling for direct payments to landlord to sustain long term tenancy agreements as it believes most of benefit claimants are vulnerable tenants. They believe that vulnerable tenants will continue to fall behind on rent payments. This is because of their poor track record of paying their bills on time including missed or late payments on credit cards or loans. Some of the benefit claimants are out of jobs because of their previous criminal convictions and hence they are unable to work in a job where they can be trusted. They are generation of benefit tenants and these people have never worked in their life time. These careless people will claim benefits and do manual "cash in hand" jobs to keep up with their life styles.

Given all this background, would you want a benefit tenant in your property that is most unlikely to pay you rent on time? For them getting ?1,000 into their bank account is like winning the lottery so before you know it they will have that money spent.

"What do Eton College & Oxford University graduates know about council tenants?", said one angry landlord. It is hardly surprising that Government did not bother asking for Landlords' advice either."

Benefit cheats are stealing ?60 billion a year from UK Economy.

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