Breaking News! Poor people not to be trusted with money
Discussion
RSoovy4 said:
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 s
tting 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?tting 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.
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?Allow me to précis - people with private landlords and in receipt of housing benefit have received that benefit directly for years and paid their rent largely without issue. A pilot scheme has been introduced whereby people in social/council housing now also receive their benefit direct rather than it going directly to the landlord and it turns out many are spending it on things other than rent. These are the findings of the landlords, not me.
Which bit don't you understand?
V8mate said:
Caulkhead said:
That's what I thought - the social landlords are soft touchs with bad tenants and the bad tenants know this and exploit it. Entirely their fault then.
In fairness, being the shelter provider of last resort isn't going to be an easy gig.Haggleburyfinius said:
I was under the impression it had been happening for some time tbh.
I'm sure I had social landlord friends moaning about this years ago.
Definately been the case for a few years. I had an HB tenant that just spent the money. Once they go around 8 weeks in arrears you can apply to have it paid direct. They then trash your place and move onto the next sucker. I will no longer take HB tenants.I'm sure I had social landlord friends moaning about this years ago.
Edited by 98elise on Tuesday 12th March 17:56
98elise said:
Haggleburyfinius said:
I was under the impression it had been happening for some time tbh.
I'm sure I had social landlord friends moaning about this years ago.
Definately been the case for a few years. I had an HB tenant that just spent the money. I'm sure I had social landlord friends moaning about this years ago.
Manks said:
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.One area saw a 50% increase in the level of arrears.
http://www.bbc.co.uk/news/uk-21756567
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?
Haggleburyfinius said:
NinjaPower said:
Haggleburyfinius said:
Yup...totally terrifying.
£21 Billion a year JUST in housing benefit payments.
total benefits bill £200bn/year...Going back to the country being full of morons against total other worldly detachment of the powers that be, many moons ago in the good old bad old days of O-levels I happened to be in a conversation with a senior civil servant who when asked what low intelligence meant in practice compared to the average citizen, replied that these people might not stretch to 5 O-level passes. Maybe 3 or so.
Which was a surprise, given that the national average then as now amounts to barely more than being able to colour in using (take your pick) a famous football team's colours or the shade of lippy on whichever vacuous celeb is flavour of the month on the telly. Not crayoning outside the border more than twice relates to above-average.
OK so a humorous exaggeration, but not much of one. For anyone who can remember that era, the national average related to a couple of Grade 4 CSEs and as such we're talking well below that. Not that everyone needs to have Prof Hawking's intellect to be worthy, but expecting people not swimming above the lower percentiles to cope was never more than hopelessly misplaced optimism.
Little will have changed, planet Zorg remains overcrowded. Detached politicians briefed and 'supported' by detached shinypants. Marvellous.
Edited by turbobloke on Tuesday 12th March 18:57
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. "
So basically "I'm a tShe 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. "
t with money me, who can I blame to mask my idiocy?".Caulkhead said:
You appear to have either read the thread and not understood it or not read it.
Allow me to précis - people with private landlords and in receipt of housing benefit have received that benefit directly for years and paid their rent largely without issue. A pilot scheme has been introduced whereby people in social/council housing now also receive their benefit direct rather than it going directly to the landlord and it turns out many are spending it on things other than rent. These are the findings of the landlords, not me.
Which bit don't you understand?
It's really you that doesn't understand it. Private sector landlords receive rent directly if their tenants are deemed 'vulnerable'. They also return to receiving it directly if arrears run to 8 weeks of rent, and after an even shorter period can request the rent is suspended if any non-payment occurs. That (vulnerability) includes very large groups of individuals. Those are the tenants who it's really just silly to give rent directly to. The rest mostly just find it a hassle. Allow me to précis - people with private landlords and in receipt of housing benefit have received that benefit directly for years and paid their rent largely without issue. A pilot scheme has been introduced whereby people in social/council housing now also receive their benefit direct rather than it going directly to the landlord and it turns out many are spending it on things other than rent. These are the findings of the landlords, not me.
Which bit don't you understand?
The core problem is entrusting major welfare reform to people who aren't very bright and don't either listen or consult with the right people.
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