Monday 29th April was a red letter day in Ashton-Under-Lyne's, Job Centre Plus office, as it was from there that the DWP decided to launch its first Universal Credit Pathfinder project, and kick-off a massive exercise designed to revolutionise the social security system in the UK. Amongst other things to ensure that taking a job or increasing your hours of work and earnings is a relatively simple and painless experience, and doesn't result in the person concerned being penalised financially nor being exposed to the vagaries of multiple indebtedness, through loss of benefit support.

Whilst all focus was on the first Pathfinder, the DWP decided to issue one of its regular circulars to  Housing Benefit (HB) staff, UK-wide, explaining how to handle claims from Jobseekers that moved away from Pathfinder areas. However, close scrutiny also revealed, the first indication that automatic 'direct payments' to landlords is to be allowed in the Pathfinder areas when the tenant fails to hand over their HB award, which, as we all know too well, is designed to reduce or extinguish his/her rental liability to the landlord. It was quite surprising that DWP chose this obscure circular to announce quite a dramatic sea change in policy. Tucking it away on page 16 of the annexe to the circular, suggests DWP wished to play down its significance and avoid suggestions of another major Ministerial climb down.

The circular HB A13/2013 states: 'Landlords can refer rent arrears cases to Universal Credit; those which are under two months' rent will trigger Universal Credit to contact the claimant to discuss their non-payment as part of the Personal Budgeting Support process, whereas those with over two months arrears will be switched to direct rent payment automatically and relevant budgeting support activity arranged subsequently.' (www.dwp.gov.uk/local-authority-staff/housing-benefit/hb-whats-new/)