§ Mr. Llew SmithTo ask the Secretary of State for the Environment what is his policy on the payment of housing benefit to banks and building societies to meet the costs of housing association loans. [31982]
§ Mr. Roger EvansI have been asked to reply.
Housing benefit may be paid by a local authority directly to a claimant's landlord in order to protect public funds. Regulations also provide local authorities with discretion to determine the appropriate method of payment which may result in payments being made directly into a bank or building society account. It is for landlords to decide how they wish to use these funds, which may include the repayment of a loan.
Local authorities do not pay housing benefit to banks or building societies to meet housing association loans. It is available to help tenants meet their reasonable rent liability.
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