Direct payment of Housing Benefit

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Direct payment of Housing Benefit
Housing Benefit Training
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Why promote direct payment?

• LHA is around the corner
• A more secure system
• There are savings to the LA from using BACS
  payments.
• It promotes financial inclusion, as claimants
  without bank accounts are encouraged to open one.

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Promoting Financial Inclusion

• Taking on personal responsibility for payments
• Creating an awareness of living expenses
• Budgeting skills
• Opening a bank account
• Facilitating access to affordable credit
• Promoting the idea of saving

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Varieties of account available

• There are a range of account banking accounts
  into which payment of Housing Benefit can be
  made
• Current Accounts which allow access to cheque
  books, loans credit cards etc.
• Savings Accounts Although HB may be able to be
  paid in the claimant still has to withdraw cash
  to pay their rent.
• Credit Unions may be able to help but will need
  to be investigated individually.
• Basic Bank Accounts accept HB , bills can be
  paid by direct debit, cash withdrawals can be
  made with a cash card from a cash machine or the
  Post office.

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Barriers to opening a bank account

• Regrettably, opening an account is not always a
  straightforward process for benefit recipients.
  Common problems include
• Poor credit history
• Inability to cope
• Just opened a Post Office account
• Lack of experience
• Insufficient evidence of identity

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Barriers to opening a bank account

• Verifying identity and residency
• Banks will normally ask for 2 pieces of evidence
  for each purpose and, like LAs, prefer official
  documents
• Hard evidence
• Current passport
• Current and full Driving Licence
• Home Office Papers granting rights of residence
• European National Identity card
• Firearms Licence
• Council Tax bills

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Barriers to opening a bank account

• Verifying identity and residency
• Banks will normally ask for 2 pieces of evidence
  for each purpose and, like LAs, prefer official
  documents
• Soft evidence
• Recent utility bills or letters for key card
  holders
• Tenancy agreements or licences from a RSL
• Tax Notification Letter
• Giro with medical card
• Letters from the DWP/PS/LA notifying benefit
  awards
• Letter from landlord who is on the electoral
  register
• Letter from a recognised educational establishment

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Barriers to opening a bank account

• Verifying identity and residency
• Banks will normally ask for 2 pieces of evidence
  for each purpose and, like LAs, prefer official
  documents
• Supplementing/supporting weak evidence
• Providing more available soft evidence
• Providing at least one piece of photo ID
• Proving that having just moved they would not be
  able to provide a number of the items requested
• Having a connection with the bank, e.g. a
  relative with an account
• Using a bank which has an agreement with the LA

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Other support LAs can provide

• Facilities for cashing cheques for those unable
  to open accounts
• The provision of money advice by the LA or a
  referral route to specialist debt or money advice
• Publicising the Landlords right to direct payment
  where the tenant is 8 or more weeks in arrears
• Identify and establish contacts with voluntary
  organisations or internal departments who would
  be aware of claimants who were unable to cope
  with their own affairs