New Housing benefit system fails Rugby’s most vulnerable tenants

Mark Pawsey, Parliamentary Candidate for Rugby, this week issued a stark warning that Gordon Brown's changes to Housing Benefit rules are harming the most vulnerable tenants and reducing the availability of affordable accommodation. Last year, Labour Ministers introduced a new 'Local Housing Allowance'. The key change was for Housing Benefit to be paid directly to the tenant rather than as previously to the landlord.

However vulnerable tenants often struggle to manage their finances and spend their rent money on other things.  The homelessness charity, Crisis, has warned that this can result in rent arrears and eventually homelessness.

Mark Pawsey, who is a former Housing Portfolio Holder at Rugby Borough Council, said:

"Labour's new Housing Benefit rules are failing the most vulnerable in our society. Landlords are being dissuaded from renting to those on benefit, and this is having the effect of reducing the availability of decent places to live. Some tenants struggle to manage their finances, using up their benefit money by the time rent pay day comes round. They then get into arrears and trouble as a result. The current position was confirmed by a Rugby Estate Agent, who told me that although the unwillingness of Landlords to offer properties to those in receipt of housing benefit was not usually advertised, this practice is widespread because the new arrangements mean that it is less likely they will receive the rent due."

Mark continued:

"There are 1,721 people in Rugby on local housing waiting lists, an increase of 43% since Labour came to power, and a sizeable proportion of them are on housing benefit. The new system makes the position significantly worse for those in greatest need. Conservatives have pledged to change Labour's failed policy. Tenants will be able to choose whether to have their housing allowance paid direct to their landlords and this will increase the availability of quality low-cost housing."