Wed 26 Apr 2006
As you are probably aware it is possible to rent your property to the DSS (that is, people on benefits). Currently the system works by the DSS paying the landlord direct, and the tenant making their DSS claims for benefit as usual.
There is an important rule to this. If the tenant is found to have been claiming the benefit unlawfully, the DSS can claim back the rent from the landlord. This rule is well known to DSS landlords, and is an acceptable risk to them.
However, from October 2006 the DSS have decided to ‘make the person receiving benefit more responsible’. It is good to see they are trying to help these people improve themselves, but the way they have chosen to do this is by paying the rent portion of the benefit to the individual, and then letting them ‘be responsible’ and pay the landlord.
Now I don’t think i need to explain why this is likely to go wrong. Basically if you are on that level of benefit it is because you are a low wage earner, or unemployed. If you are in this position and come October you receive another say 200 in your benefit each month, where is that going to end up? My prediction is that paying the landlord will not be top of the list.
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