This has concerned social landlords and tenants, who fear the move will lead to rent arrears rising and impact on their budgets, with plans to pay benefits direct. See our blog on 17th September 2011, inviting pilots.
Lord David Freud, the welfare reform minister, annouced a number of pilot projects to examine how the housing costs element of universal credit can be paid to the landlord in some circumstances. In a Lords debate on 20 October 2011, he said there had been 40 expressions of interest from organisations wanting to take part in the six demonstration projects.
The date for offering to pilot direct payments has now closed.