Councils were warned this week that their administration of housing benefit is now so bad that they can't be trusted to retain responsibility for it
Child Poverty Action Group director Martin Barnes told the Local Government Association housing conference that unless administration was improved, the Benefits Agency might have to take over.

He described some councils' housing benefit (HB) administration as "abysmal" and added, "unless there is clear evidence of a significant and sustained improvement in administration, the option of HB administration being brought within the mainstream benefit system is likely to be higher up the agenda."

Barnes conceded that the benefit is "deeply flawed and hard to administer" but he branded low standards of administration as "unacceptable."

He added: "If real and consistent improvement cannot be delivered, then a transfer to the Benefits Agency may need to be considered."

Barnes highlighted councils who had contracted out administration to private firms. He said: "All too often this is associated with poor performance, perhaps reflecting naivete on the part of the bidders as to the scale and nature of the task." But he warned delegates against using private firms as a "scapegoat" when responsibility rests with councils.

Barnes also attacked the government's long term aim of encouraging tenants to shop around for houses by cutting full housing benefit entitlement. He said: "The debate about shopping incentives and housing benefit provision needs to be in the context of inadequate basic incomes."

He added: "Built-in shortfalls are not acceptable in the context of current housing supply, quality, affordability and distribution. CPAG believes that incomes should not be reduced to below an adequate minimum income level after paying housing costs - unless and until there is an adequate supply of affordable and accessible housing at a decent standard."

Source

Housing Today