Breaking News! Poor people not to be trusted with money

[Caulkhead]

NinjaPower said:

As some of you may know from my contributions to some of the 'leasehold' threads that come up, one of my roles is working directly in the Housing Association/Social Landlord sector, and to say that the industry is absolutely stting itself over direct payments is an understatement.

It is literally all hands to the pump while screaming "Brace! Brace!".

There is talk of this new arrangement actually bankrupting social landlords with poorer cash reserves, within a few months of it starting.

Operating costs genuinely are increasing due to this, many social landlords are having to take on and train entire teams of staff just to chase arrears.

It will not end well for anyone unfortunately.

As you're involved in the sector perhaps you can help me understand why it works fine for people with private landlords but it is going to end in armageddon for council/HA tenants and landlords? Why can people with private landlords remember to use the money for the rent to pay their rent and those with a 'social' landlord can't?

[dunmow70]

doogz said:

One tenant failing to cope is Margaret Tonks, a single mother from Broseley, Shropshire.

She approached her local Citizens Advice Bureau (CAB) after using some of her housing benefit to pay for gas and electricityfags and booze and has now built up arrears.

"I do not know why they moved me to the new scheme," she said. "I hardly have enough money to live day-to-day.

"By them paying the money directly to me it created temptation to use it for other things which has resulted in me being in arrears and possibly being evicted. "

EFA.

[RSoovy4]

Caulkhead said:

NinjaPower said:

As some of you may know from my contributions to some of the 'leasehold' threads that come up, one of my roles is working directly in the Housing Association/Social Landlord sector, and to say that the industry is absolutely stting itself over direct payments is an understatement.

It is literally all hands to the pump while screaming "Brace! Brace!".

There is talk of this new arrangement actually bankrupting social landlords with poorer cash reserves, within a few months of it starting.

Operating costs genuinely are increasing due to this, many social landlords are having to take on and train entire teams of staff just to chase arrears.

It will not end well for anyone unfortunately.

As you're involved in the sector perhaps you can help me understand why it works fine for people with private landlords but it is going to end in armageddon for council/HA tenants and landlords? Why can people with private landlords remember to use the money for the rent to pay their rent and those with a 'social' landlord can't?

Because those in private housing know that if they don't pay they'll get booted out, whereas council tenants know they are very unlikely to be booted out, and at worst will have to pay it back at 50p a week.

[anonymous-user]

Caulkhead said:

NinjaPower said:

As some of you may know from my contributions to some of the 'leasehold' threads that come up, one of my roles is working directly in the Housing Association/Social Landlord sector, and to say that the industry is absolutely stting itself over direct payments is an understatement.

It is literally all hands to the pump while screaming "Brace! Brace!".

There is talk of this new arrangement actually bankrupting social landlords with poorer cash reserves, within a few months of it starting.

Operating costs genuinely are increasing due to this, many social landlords are having to take on and train entire teams of staff just to chase arrears.

It will not end well for anyone unfortunately.

As you're involved in the sector perhaps you can help me understand why it works fine for people with private landlords but it is going to end in armageddon for council/HA tenants and landlords? Why can people with private landlords remember to use the money for the rent to pay their rent and those with a 'social' landlord can't?

You raise a very valid point, and I can only offer a limited answer unfortunately, as there are no clear reasons.

The first thing I would say, is that generally the tenants that end up renting from a social landlord rather than private, are often the 'lower end' of the tenant spectrum. They may have ran up debts with other landlords and are now not welcome in the private sector. They may have been evicted from private rented accommodation for anti social behavior and are forced to seek property from social landlords who have to have extremely serious reasons not to house someone, not just that they didn't get a good reference.

Private landlords are also much less tolerant than a social landlord. If you rent privately and miss rent payments or piss the neighbours off, the chances are that the landlord will take fairly swift action against you. Social landlords are encouraged to only evict people as an absolute last resort, so arrears can drag on for months or even years before the landlord seeks to evict.

[anonymous-user]

Caulkhead said:

Why can people with private landlords remember to use the money for the rent to pay their rent and those with a 'social' landlord can't?

really? you think those unable or unwilling to find a job that pays enough to support them are on average better or worse than those who can at managing their finances?

[anonymous-user]

Soovy just beat me to it with the same sentiments

[Du1point8]

fbrs said:

Caulkhead said:

Why can people with private landlords remember to use the money for the rent to pay their rent and those with a 'social' landlord can't?

really? you think those unable or unwilling to find a job that pays enough to support them are on average better or worse than those who can at managing their finances?

They can do their finances... however knowing they will not get kicked out means rent comes below sky/fags/white lightening/takeaway.

Once they have spent it all they claim ignorance and need more free money and the circle continues.

[anonymous-user]

Just read the BBC report.

Apparently it's not that they can't be trusted, they just can't cope......

[Deva Link]

REALIST123 said:

Just read the BBC report.

Apparently it's not that they can't be trusted, they just can't cope......

Sweeping generalisation, but if they had anything about them they wouldn't be in social housing and struggling on benefits in the first place.

[rover 623gsi]

NinjaPower said:

As some of you may know from my contributions to some of the 'leasehold' threads that come up, one of my roles is working directly in the Housing Association/Social Landlord sector, and to say that the industry is absolutely stting itself over direct payments is an understatement.

It is literally all hands to the pump while screaming "Brace! Brace!".

There is talk of this new arrangement actually bankrupting social landlords with poorer cash reserves, within a few months of it starting.

Operating costs genuinely are increasing due to this, many social landlords are having to take on and train entire teams of staff just to chase arrears.

It will not end well for anyone unfortunately.

sadly, this is very true

[rover 623gsi]

Deva Link said:

Sweeping generalisation, but if they had anything about them they wouldn't be in social housing and struggling on benefits in the first place.

Not true, of course.

There are approx. 4 million social housing properties in the UK (housing around 8 million people). Not all people in social housing are ‘on benefits’. Around half of all social housing tenants are over 50 and most of them will have lived (and are living) very normal, productive lives.

It is also true to that, relatively, the average income, educational achievement and employment history of people in the social housing sector is not as high as those who are home owners. That doesn’t mean they are all the dregs of society.

[Rovinghawk]

Deva Link said:

Sweeping generalisation, but if they had anything about them they wouldn't be in social housing and struggling on benefits in the first place.

Or they're smart enough to play the system to maximum effect?

RH

[Smiler.]

RSoovy4 said:

doogz said:

One tenant failing to cope is Margaret Tonks, a single mother from Broseley, Shropshire.

She approached her local Citizens Advice Bureau (CAB) after using some of her housing benefit to pay for gas and electricity and has now built up arrears.

"I do not know why they moved me to the new scheme," she said. "I hardly have enough money to live day-to-day.

"By them paying the money directly to me it created temptation to use it for other things which has resulted in me being in arrears and possibly being evicted. "


You're a grown fking woman! Shoulder some responsibility!

Britain is FULL of MORONS.

There's a thread along these very lines in the lounge

[Deva Link]

rover 623gsi said:

Not all people in social housing are ‘on benefits’.

Sure - but I said in social housing AND struggling on benefits (by 'struggling on benefits' I mean not working).

rover 623gsi said:

That doesn’t mean they are all the dregs of society.

Of course not, hence I said it was a sweeping generalisation. Some will pay their rent with no problems.

Edited by Deva Link on Tuesday 12th March 16:46

[otolith]

rover 623gsi said:

Deva Link said:

Sweeping generalisation, but if they had anything about them they wouldn't be in social housing and struggling on benefits in the first place.

Not true, of course.

There are approx. 4 million social housing properties in the UK (housing around 8 million people). Not all people in social housing are ‘on benefits’.

He didn't say they were, he said "they wouldn't be in social housing and struggling on benefits in the first place" - which would appear to refer to only the subset of those in social housing who are on benefits, no?

[anonymous-user]

rover 623gsi said:

Not all people in social housing are ‘on benefits’

Correct, but just as one example, the Housing Association I am involved with is classed as 'small to medium', and has over 6000 properties. Over 80% of their rental income is housing benefit payments from the local city council.

Over £2.2 million every single month just in housing benefit. For one small housing association, in one area.

[Manks]

V8mate said:

You have to wonder how the government ever thought it would end well? Thankfully they ran a pilot project before deciding whether to roll-out nationwide, their plan to pay housing benefit to the tenant rather than direct to the landlord, as it has been for many years.

One area saw a 50% increase in the level of arrears.

http://www.bbc.co.uk/news/uk-21756567

The rent will again be paid to landlords by default.

An aside - a chap that used to work for me is now working for a housing association. He tells me that the government money coming their way is obscene. He also mentioned that they recently purchased a block of luxury apartments that were too good for the normal tenants, so they have been bought in a separate company and rented out at full market rent to professionals. Which is not how it's meant to work, is it?

[pilchardthecat]

We should have a national cull.

[Deva Link]

NinjaPower said:

Correct, but just as one example, the Housing Association I am involved with is classed as 'small to medium', and has over 6000 properties. Over 80% of their rental income is housing benefit payments from the local city council.

Wow - I would never have guessed the percentage was that high.

[anonymous-user]

Deva Link said:

NinjaPower said:

Correct, but just as one example, the Housing Association I am involved with is classed as 'small to medium', and has over 6000 properties. Over 80% of their rental income is housing benefit payments from the local city council.

Wow - I would never have guessed the percentage was that high.

I would never have believed it either if I hadn't seen the monthly report and BACS payment from the council.