It does appear that the Welfare Reform Bill is managing to bring opposite and diverse factions together for the first time. Unfortunately the architects of the bill have little to crow about because the separate entities are uniting to oppose the bill.
Creation of new organisation
The birth of the Tenant Choice Alliance (TCA) has come about because of the bill and involves such groups as the Residential Landlords Association, the Council of Mortgage Lenders, the National Housing Federation and the Tenants and Residents Association of England. The alliance is targeting the housing allowance aspect of the new universal benefit scheme that will be introduced via the Welfare Reform legislation.
Private Landlords threaten action
When the Bill becomes law, all of the universal benefit will be paid directly to the tenant, with the government defending its position by saying that benefit claimants should be responsible for their own financial arrangements and it is important that they manage their own affairs. Private landlords in particular are concerned about the situation and rather than pay out more in landlord insurance to protect themselves from rent arrears have threatened to stop letting their properties to people on benefits. It would be a disastrous situation but landlords are not alone in asking for a change.
Housing associations agree
Many housing federations agree with landlords that tenants should be given a choice, saying that many unemployed tenants would much prefer to see their rent paid directly to their landlord. This gives then the security of knowing their rent has always been paid and eliminates their fear of becoming homeless. Most tenants are fearful of getting into arrears and welcome the payment by-passing their very difficult to manage budgets.
Tenants ask for choice
A spokesman for the Tenants Association in the alliance also confirmed that choice in the matter would be most desirable. And it does seem the most sensible way forward. Many people in the UK today worry about not being able to afford homeowners insurance to protect their property, but to actually worry about not having a roof over your head because you are behind with your rent is a different proposition entirely, and the truth is lots of people are hopeless when it comes to managing money. The present Government have demonstrated time and again over the last 12 months that they are willing to change direction if they think they have got something wrong. The TCA will be hoping the Welfare Reform Bill will get the same kind of understanding.