Does anyone in Pathfinder areas have any comments about how this is proceeding, and any problems e.g. difficulties opening bank accounts, rent arrears etc.? Would be particularly interested in comments by any Housing Associations affected by the changes, and how problems are being addressed,e.g. support to help vulnerable tenants pay their rent? Also are any HA's considering stopping their direct payments now, in advance of the proposed changes?

All comments would be of interest.

I should start by pointing out that LHA does not apply to HA tenancies, so HB continues to be calculated as before and direct payment can continue as well.

In Brighton and Hove the rates which have been set seem (at the moment) to be pretty generous in relation to rent levels here. A large number of private tenants are receiving HB in excess of their rent as a result. This is also pushing entitlement higher up the income scale, so our caseload should go up over time.

There is some evidence of private landlords putting rents up to the LHA levels, which was always likely. Advisors and indeed the private landlords association are trying to convince landlords that this could be counterproductive, as the spare cash would act as a retention incentive to good tenants, whereas if the landlords try to grab all the dosh it will just alienate people.

Under the direct payment rules, we have had 60-odd applications on vulnerability grounds since we went live in February and granted most of them. It is fair to say that the size of this issue may be masked at present, because all pre-existing direct payment cases will continue until June, so it may not be until then that we start getting problems.

The key things to do when introducing this scheme seem to be -

1) Working with landlords and explaining the change carefully to them.
2) Putting money advice outlets in place to help tenants who might have difficulties to cope with the responsibility of receiving benefit themselves.

In case you think this is too much of a PR job, my personal view is that the long-term effects of this scheme cannot be judged yet. My chief concern is the inflationary effect on rents if landlords do just put rents up to the LHA levels.