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The government has announced plans to pay benefit direct to tenants, leading to fears that lender confidence in the sector will be damaged by rising arrears.
Last month’s Welfare Reform Bill includes a provision for the housing element of the new universal credit to be paid to housing associations rather than tenants in some circumstances, but details of this remain unclear.
Speaking at the second reading of the Welfare Reform Bill this afternoon, work and pensions secretary Iain Duncan Smith said: ‘I understand the concerns [around removing direct payments to landlords]. There is a debate on both sides. We are still trying to make a decision on this.’ Read More: