Benefits payment trial causes alarm (From The Oxford Times)

Benefits payment trial causes alarm

3:00pm Friday 27th January 2012 in News By Damian Fantato

Nassira Jmil fears people will just spend the money rather than making rent payments

PLANS to hand housing benefit payments direct to social housing tenants have come under fire as Oxford City Council prepares to take part in a welfare pilot scheme.

The council is one of only five in the country that will test some of the Government’s reform plans.

Instead of the benefit being paid to a housing association, the scheme will see housing benefit payments go to tenants, as it would under the proposed universal credit system.

Tenants who rent from private landlords already receive the benefit money directly to go towards their rent payments.

However, giving many more people the money, rather than it going straight from the Government to housing associations or councils, has been called a “big risk”.

Council tenant Nassira Jmil, who used to be entitled to housing benefit, said: “I don’t think it will be a good thing, because people will just spend the money. I didn’t mind that the money went straight to the landlord.

“There should be a system which is more open to personal choice.”

From June, tenants of Oxford Citizens Housing Association will be paid their housing benefits as part of the trial.

Carole Roberts, of Rose Hill and Donnington Advice Centre, said: “We don’t think housing benefits should be given to tenants directly.

“Government is proposing to do it monthly and it’s quite a big risk for people to have a large amount of money once a month.”

Landlord Karim Easterbrook said: “For me, whether it goes to the landlord or to the tenant is neither here nor there. But in my opinion it’s fraudulent if money which is meant for a room doesn’t go towards that room.”

Ed Turner, deputy leader of the city council, said: “We offered to participate so that Oxford’s experiences can help to identify the ways in which the proposed changes will affect the viability of universal credit.

“We will aim to find ways of minimising the financial risks of direct payments for landlords, while improving the financial awareness of tenants.”

Under the universal credit system, due to come into force next year, a wide-range of benefits will be brought together into one payment.

The Oxford trial, which will last until June next year, will allow the Government to find out how best to inform claimants of the changes and how to support claimants and landlords in financial difficulties.

David Ashmore, chief executive of GreenSquare Group, which runs Oxford Citizens Housing Association, said: “The Government’s proposals for welfare reform and the payment of universal credit will give people more freedom and responsibility.

“We are pleased to have the opportunity to be part of this pilot to test what will actually happen.”