A renowned think tank is fully behind a trade body’s call for the government to allow tenants to ask for their rent to be taken from their housing benefit and paid direct to their landlords.

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The trade body has for many years campaigned for the government to give renters more choices for how their benefits are managed one of which is extending the alternative payments (APA) arrangements to all Universal Credit recipients, instead of just for those who are unable to manage their once monthly payments.

In its latest report studying the social security system the Institute for Public Policy Research (IPPR) agrees with and backs the trade body’s calls.

It advises the government that APAs should now be offered to all new Universal Credit recipients and options should include:

Ø  To help budgetary issues allow split payments to different members of a household.

The report says the once monthly benefit payments makes ‘finances harder to manage and increase the risk of debt’ whereas in Scotland APAs are offered without any eligibility requirement which has an extremely high uptake.

The trade body is also concentrating its campaign for a governmental long term commitment to increasing the Local Housing Allowance (LHA) every year after it was announced that the freeze on rates will be ‘unfrozen’ this April. which will be brought into line with the 30th percentile of homes to rent.

The trade body has called for the government and Labour to commit to making sure that housing benefits are reviewed each year in order to be kept in line with market rental rates.

The IPPR is also recommending the same type of commitment regarding LHA continual yearly adjustments and said: “We expect that the situation will deteriorate as Local Housing Allowance rates are frozen again. 

 “We recommend the next government should pin LHA to the 30th percentile of homes for rent (meaning LHA would be adjusted each year to keep up with the lowest 30 per cent of homes to rent in an area), through legislation, offering renters some protection from rising rents; and should conduct a housing support review.”

A spokesperson for the trade body said: “Alternative payment arrangements work for landlords and tenants; tenants have the reassurance that their rent will be paid directly from their Universal Credit, and landlords that their tenants will not fall into arrears. 

“We are pleased our proposals on welfare and improvements to the benefits system are being backed by an independent think tank, which, like us, recognises the need for a system that is fair to both landlords and tenants.