Source · Select Committees · Scottish Affairs Committee
Recommendation 141
141
We heard evidence that there were administration issues with the direct payment to landlords option.
Conclusion
We heard evidence that there were administration issues with the direct payment to landlords option. Citizens Advice Scotland told us that it ‘has been tricky for DWP, social landlords and all the other various parts of the system—the Scottish Government as well— to align’342 the direct payments to landlords Scottish Choice. The Scottish Federation of Housing Associations highlighted in written evidence that initially there were issues with the ‘DWP’s reliance on an older payment system, totally unsuited for the administration of direct payments to landlords’343 as these payments ‘were not synchronised with the calendar monthly date their tenant received their Universal Credit award.’344 As such, ‘this made it difficult for landlords to accurately manage their income and increased the risk of cash flow shortages for smaller housing associations, and tenants were ending up in administrative rent arrears through no fault of their own.’345 This was such a major issue at the time that organisations, including housing associations, advised claimants against taking up this option as it was leaving claimants unable to pay rent. Suzanne Lavelle from Southside Housing Association told us: we were one of the RSLs [Registered Social Landlords] that were telling people not to take that choice up, because it was so difficult. It could have been in excess of eight weeks after somebody had the payment deducted from their universal credit that that money hit their rent account. They were getting letters through no fault of their own about rent arrears and non-payment.346 338 Q86 339 Scottish Federation of Housing Associations (WPS0017) 340 Scottish Federation of Housing Associations (WPS0017) 341 Scottish Federation of Housing Associations (WPS0017) 342 Citizens Advice Scotland (WPS0014) 343 Scottish Federation of Housing Associations (WPS0017) 344 Scottish Government (WPS0013) 345 Scottish Government (WPS0013) 346 Q123 Welfare policy in Scotland 51 The Scottish Federation of Housi
Government Response
Not Addressed
HM Government
Not Addressed
The Scottish Government’s current policy is to offer Scottish Choices in the second assessment period. This allows time, in the first assessment period, to consider DWP Alternative Payment Arrangement, for more frequent payments and managed payments to landlords to protect vulnerable people who are at risk of not paying their rent. Social landlords are also able to request a DWP Alternative Payment Arrangement from day one, if they believe their tenants are vulnerable. Scottish Choices do not replace the need for DWP Alternative Payment Arrangements. Claimants can opt in or out of a Scottish Choice at any time. Only DWP agents can review Alternative Payment Arrangements, ensuring housing costs continue to be paid directly to the landlord, for those who may otherwise choose not to pay them.