"Shopping incentive" schemes for housing benefit could be piloted in the private sector, according to the civil servant who is reforming the housing benefit system
Paul Howarth, divisional manager for housing support at the Department for Work and Pensions, told delegates more rent restructuring and choice-based lettings would be needed before the incentive scheme – aimed at encouraging tenants to look for tenancies more within their means – was introduced for social landlords.

Howarth added that a new housing benefit system was needed for pensioners and that pension and tax credits would eventually have to be harmonised with housing benefit.

The plans come after an investment of £200m over three years and a raft of reforms to improve standards in the service. Howarth said: "We have done a lot to improve administration and there seems to be evidence that things are turning around, but we are not complacent."

Danny Friedman, National Housing Federation head of research and information, said shopping incentives could revolutionise renting. Once a proportion of the rent was going to the tenant rather than directly to the landlord, it made sense to pay the tenant the entire sum, which would change the landlord-tenant relationship, he said.

Another speaker at the conference, Professor Peter Kemp of York University, said housing benefit was tied too tightly to changes in marital status or working hours.

He suggested other benefits be reformed so housing benefit could become less sensitive.

Source

Housing Today