The impact of the direct payment of housing benefit: evidence from Great Britain

In recent years, a number of welfare reforms have been introduced in the UK by Conservative-led governments. The most high profile of these is Universal Credit (UC), which is currently being rolled out across the country. A key feature of UC is a change in the way the income-related housing allowance for social housing tenants (Housing Benefit) is administered, as under UC, it is paid directly to tenants (direct payment), who are responsible for paying their rent. This represents a step change for them as for more than 30 years landlord payment has been the norm in the UK. There has been little research into direct payment. This paper seeks to address this gap in knowledge by presenting the key findings of an initiative designed to trial direct payment. It finds that many tenants experienced difficulties on direct payment. Reflecting this, landlords' arrears rose markedly.