Local authority and housing association partnerships  are named today as the successful volunteers the Government plans to work with  on pioneering demonstration projects that will see claimants in the social  rented sector directly receiving monthly housing benefit payments and paying  rent to landlords themselves for the first time.

The demonstration projects, which will take place  from June 2012 until June 2013, will test how claimants can manage housing  benefit monthly payments ahead of the introduction of Universal Credit from  October 2013.

The projects will also look at the appropriate level  of safeguards needed to help secure landlord income streams if tenants fall  behind on their rent.

The local authority and housing association  partnerships named for the demonstration projects are:

Each will be involved in testing out different  elements of the project, including testing different trigger points when social  landlords should receive direct payments if tenants fall into specified levels  of arrears. The projects will also inform how best to communicate  the changes to claimants, provide assistance with budgeting to successfully pay  their rent, and support claimants and landlords experiencing financial  difficulties.

Minister for Welfare Reform Lord Freud said:

“Direct monthly benefits payments are a key part of  Universal Credit, allowing claimants to prepare for the financial  responsibilities they will face when in work and to encourage them to move away  from often costly weekly and fortnightly budgeting.

“However, we know that some families will need  support to adapt to managing their finances in this way.  The demonstration projects will help us to  understand the demand for budgeting support and the best ways to deliver it.”

Alongside this measure, Ministers are working with  the banking sector, credit unions, supermarket financial services and the Post  Office to explore opportunities to develop cost-effective budgeting accounts  for claimants moving onto direct payments.

The Government has also commissioned a review of the  projects led by Professor Paul Hickman from the Centre for Regional Economic  and Social Research at Sheffield   Hallam University.  The review will evaluate the impact of direct payments on claimants and  vulnerable groups, as well as local authorities and social rented sector  landlords.

While the majority of Universal Credit claimants  renting in the social sector will be responsible for making their own rent  payments to landlords, vulnerable claimants and pensioners will continue to  have their housing costs paid direct to their landlord.