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It found that residents who were paid direct had run up higher arrears than those whose housing benefit went straight to the landlord.
Advice services also estimate that when tenants are paid their housing benefit payments directly – as opposed to it being sent directly to their landlord as is the current practice – this will also result in higher arrears as vulnerable people struggle to manage their finances.
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The Congo has among the highest arrears to the fund, with $510 million in overdue debt, a spokesman said.
LeCompte said the restructuring could become a future example of how best to manage debt relief, particularly in developing countries that have high arrears and no means of paying them back.
Almost overnight, our residents experienced higher rent arrears, the immediate threat of eviction by private landlords, and not enough money to get by.
Changes to welfare will lead to increased numbers of tenants abandoning their homes, higher rent arrears, and higher reposessions as residents are given the responsibility to pay their rent.
The concern must be that the vulnerable are not protected from the risk of rising homelessness through the possibility of higher rent arrears and eviction rates, and through the gap between the capped local housing allowance and privately determined rent rates.
An obvious question here is why there is such a high rate of arrears when the payments themselves are so low?
Fathers with incomes under $20,000 are those with the highest child support arrears, and low-income parents also have the least access to paid leave in the country.
But housing charities have warned that the result will be higher levels of rent arrears and greater homelessness.
Housing charities are warning that the result of the changes will be higher levels of rent arrears, and greater homelessness.
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