Friday, 9th January 2009

News from the Guernsey Press

Rent dodgers are ‘cheating States’

MONEY paid to benefit claimants for rent is being used for other things. ‘People who behave like this are effectively taking money from the States under false pretences,’ said estate agent Steve Charman.

He believes Social Security should tighten procedures and, where necessary, pay rent direct to the landlord.

‘We are obliged to give receipts when people pay their rent, which obviously we don’t if they don’t pay, so how can these people keep getting their rent money?

‘When people rent accommodation from the private sector, it’s the States’ obligation to make sure that money they pay out to claimants is going to the right place.’

Mr Charman believes the problem is quite widespread and said some landlords were becoming reluctant to let to benefit claimants, which could impact on the good payers.

Social Security minister Diane Lewis said supplementary benefit, including any rent allowance, was paid to the person making the claim.

‘We would only pay a rent allowance direct to the landlord in very exceptional cases,’ she said.

The law allowed a benefit to be split, with some being paid to a third party such as a landlord, but only if it was in the interests of the claimant or their dependants to do so.

Many supplementary benefit payments were for relatively small amounts to top up other benefits and might not be enough to cover the rent.

‘While it may be very attractive to landlords to receive guaranteed rent payments from Social Security, it does not encourage people to take charge of their responsibilities,’ said Deputy Lewis.

‘We feel that it’s important for people to manage their own affairs as far as possible.

‘Collection of rent from the tenant is part and parcel of being a landlord and landlords are often owed money by people who are not on benefit.’

Article posted on 26th April, 2007 - 12.00am

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