Council pays rent, is this normal?

Replies to This Discussion

Permalink Reply by Hugh on April 13, 2013 at 19:49

No, he's misinformed. Hasn't he been listening to the news? http://hgyol.in/175vnde

Permalink Reply by Alison P on April 13, 2013 at 21:42

He's just very misinformed I think. And Haringey is about the worst place to move to in his situation as it is one of a few boroughs trialling the new system that will be rolled out later this year. This will involve new limits on how much housing benefit can be claimed (would be interested if anyone knows what it is for a couple with no kids (ie one bedroom) and how that compares with rents round here). And it isn't the council who pay it, it's central government.

Permalink Reply by Alan Stanton on April 13, 2013 at 21:56

It's interesting, Jessica, that you posed the question making assumptions. First that the couple's statement was accurate; and second that as the Council "were willing to pay such a high rent to a private landlord then they are obviously OK with it". This seems to assume that Housing Benefit rates are set by local Councils - rather than a Government scheme.

I hope you don't see this as a critical comment. I accept that you are genuinely curious. If you want to know more about the scheme even before the changes in Haringey then I recommend Shelter's website.

And while I'm not in any way doubting what this couple told you, in fifteen years as a councillor I can hardly recall coming across cases like this. The people I have seen - and now many many more - are often getting various social security "benefits" to make up for low-paid and frequently part-time jobs; sometimes at unsocial hours.

If they are private tenants the Government's money goes into the pockets of their landlords. Who may or may not carry out their legal duties: to ensure basic repairs for example; or that the heating works properly. Naturally, with no security many tenants are reluctant to complain.

(Tottenham Hale ward councillor)

Permalink Reply by Alan Stanton on April 13, 2013 at 23:24

Jessica, I'm not doubting you reported what you were told. I can only suggest you take a look at the links suggested by Hugh and me.

There is often another issue and that's to do with people's particular circumstances. You'll see these listed on the Shelter website.

From time to time I meet people who complain about their neighbours apparently getting some unjustified benefit. Sometimes I do know the reason. But I always give the same answer: that I don't discuss anyone's private circumstances with anyone else.

Permalink Reply by Maddy on April 13, 2013 at 23:32

Rents used to be capped under the Fair Rent system until the law was changed about 25 years ago under guess which government. Now landlords can charge "market" rents, and we all know where that leads. Notwithstanding the recent benefits cap, which will cause problems for a lot of local tenants, I think it is fair to say that housing benefit has made a lot of landlords richer - they use it to pay off their mortgages and gain from the rising value of the properties they own, while the poor tenants have to stump up ever-increasing rents. However, penalising the benefit recipients will not bring rents down, it will probably just make more people homeless.

Permalink Reply by John D on April 14, 2013 at 6:05

The Labour government could have reinstated rent control any time in their 13 years in office. Did they ?

Permalink Reply by matt on April 14, 2013 at 22:23

In other more enlightened places, such as the Netherlands, rental rates are kept low by law (on most but not all properties). And an agreement can only be terminated by the tenant (unless of course a tenant stops paying their rent). More here. 

Permalink Reply by John D on April 14, 2013 at 23:30

\There was a clip on TV the other night with Neil Kinnock saying how wonderful it was that his parents could afford to buy their council house

Permalink Reply by Colinloves on April 19, 2013 at 2:23

Oh yes...The Thatcher problem.

Its amazing wot she done with 2 changes of law

Permalink Reply by james walsh on April 15, 2013 at 9:36

This is a spoof posting right ?

Permalink Reply by Abi on April 15, 2013 at 10:00

I don't think Jessica is claiming to be unaware that ANY tenants have help from the state  - she's simply expressing surprise that someone would be so apparently confident of being able to walk in to a part of London (any part, these days tbh) where rents frequently exceed the amount of benefit we've all been made well aware one can now claim. 

I didn't read any judgement into it, just a continuation of the discussion that's been brewing in the news for several weeks now and a surprising example from Real Life that seems rather at odds with what we're hearing. I THINK, that as a couple they can claim maximum of £250 or £300 per week, others may correct me. But AFAIK that would normally involve other things, not just housing benefit. My guess is they are both disabled in some way, but who knows?

I have to admit I'd be surprised if someone said these things to me as well. 

Permalink Reply by Liz on April 16, 2013 at 11:34

Obviously, as Alan suggests, we can't actually *know* what makes this couple believe as they do.

I do wonder if it isn't an example of someone believing everything they read in the papers (how many stories does a paper need to run about 'million pound mansions in Kensington paid for by the taxpayer' for people to think that the system really does pay for everything you demand? ) John Harris writes about the fact that many, many people believe the welfare state encourages dependency and frequently those most likely to be hit by these cuts are also quite likely to buy into the idea that while *they* claim from necessity, lots of others are just lazy/scroungers/shirkers/dependent (take your pick depending on which paper you read)

From the info given, it would seem that this couple (and I appreciate this is speculation) have not yet tried to rent anywhere and have not put in a claim for HB. As a couple w/o children, you can claim for a one bedroom flat and the maximum amount that HB will pay for the Ladder is £184.62pw as it is classed as Outer London (more here). It may be possible to get a flat for that rent (last time we discussed this, a HOL member said 600 a month covered a bedsit.)  

To answer your question "Why does this couple's rent get paid by the council?" A non-working couple (not disabled) can claim £111 a week JSA which entitles them to full HB and from 1 April to pay 20% of their council tax bill. I don't think the benefit cap would affect them yet unless there were other benefits being claimed but where they may have it wrong is that there is no limit on the amount. For admin reasons, the cap means that any money lost is deducted from HB, so a shortfall on rent must be made up from other benefits received. If either of them are disabled and claiming DLA or Support component of ESA, then the cap doesn't apply, although LHA still does. 

Worth bearing in mind, that many landlords are becoming nervous about letting to HB claimants, fearing rent arrears, due to the proposed changes that mean that they would not get the rent paid directly but have to collect from the tenant when Universal Credit comes in. So, even if you find your dream flat, you may not be able to rent it once you reveal you intend to pay the rent via HB to the landlord.