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Housing Benefit

Volume 482: debated on Tuesday 4 November 2008

To ask the Secretary of State for Work and Pensions (1) what the (a) total and (b) average amount paid to households receiving local housing allowance above the five bed rate was in the most recent month for which figures are available, broken down by the smallest geographical area for which figures are available; and if he will make a statement; (230283)

(2) how many households are in receipt of local housing allowance above the five bed rate (a) nationally and (b) broken down by the smallest geographical area for which figures are available; and if he will make a statement.

To ask the Secretary of State for Work and Pensions what assessment he has made of the effects on vulnerable people of direct payments of housing benefit. (232814)

[holding answer 3 November 2008]: Two of the intended effects of the local housing allowance are to promote financial independence and personal responsibility. Therefore payments are normally made directly to tenants so they have personal responsibility for paying their rent. However, we recognise that there will always be a small proportion of tenants who will struggle with this, so there are circumstances in which the local authority has the power to pay benefit direct to the landlord.

These are if the local authority either considers that the tenant is likely to have difficulty in relation to the management of their own affairs—for example, the tenant is known to have a learning disorder or a drug/alcohol problem that would mean they are likely to have difficulty handling a budget—or considers it improbable that the tenant will pay their rent; for example, the local authority is aware that the tenant has consistently failed to pay the rent on past occasions without good reason.

Additionally, in housing benefit generally, payment direct to the landlord is a statutory requirement if a tenant has built up rent arrears of eight weeks or more, or is having deductions from their income support or jobseeker's allowance to pay off rent arrears. If this occurs, the local authority has the discretion to continue paying direct to the landlord when the level of arrears drops to below eight weeks.

We plan to review the LHA, which was rolled out nationally from April 2008, during the first two years of operation.