Tenants allowance plans shelveD

29 Jun 06
Plans to replace housing benefit with an allowance paid to tenants have been shelved in the social rented sector.

30 June 2006

Plans to replace housing benefit with an allowance paid to tenants have been shelved in the social rented sector.

Trials of the local housing allowance are to be restricted to tenants with private landlords after housing associations convinced the government that it was inappropriate for social housing.

The announcement was made by the Department for Work and Pensions in its response to the welfare reform green paper.

Trials of the allowance began among private landlords three years ago, but 80% of families in receipt of housing benefit rent homes from councils or housing associations.

Housing benefit minister James Plaskitt said: 'I remain extremely concerned about the high levels of worklessness and financial exclusion in this sector and will develop proposals for using housing benefit to help address this.'

Helen Williams, head of neighbourhoods at the National Housing Federation, said: 'We believe that the way to achieve personal responsibility is through financial inclusion initiatives.'

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