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Landlords in benefits row
LANDLORDS in Blackpool today hit out at the resort's trial benefit system which they believe tempts people into spending cash on drugs and booze.
The resort is running a “pathfinder” scheme for the Government in which housing benefits are paid to claimants rather than to landlords.
Today Blackpool Landlords’ Forum hit out at the scheme, supporting claims by Blackpool and Fylde Coroner Anne Hind that benefit payouts were funding the resort’s drugs problem.
Blackpool and Fylde has been dubbed the drug death capital of the UK, with the highest narcotic-related death rate in the country.
John McGlynn, of the Blackpool Landlords’ Forum, said: “We are in a unique position in Blackpool in having far more private rented accommodation than elsewhere in the UK.
“People who are unemployed in other parts of the country decide they are just as well being unemployed in Blackpool.
“When they arrive, suitcase-in- hand, the council is duty-bound to put them up and pay benefits.
“But unlike the rest of the country, Blackpool, because it is part of the Government pathfinder scheme, pays the money to them, rather than direct to the landlord.
“They are receiving a cheque every two week for 160.”
Under the new system, a flat rate Local Housing Allowance (LHA) is paid, giving tenants the chance to shop around.
They can find cheaper property and pocket the difference, or go upmarket and make up the extra rent themselves.
Mr McGlynn believes the system presents a huge temptation to some claimants.
He said: “It’s up to them how they spend the money. It might go on drugs, alcohol, lottery tickets. I agree with the coroner it’s feeding the problem. They’re putting cash in the hands of people who could succumb to temptation.”
Mr McGlynn, a landlord in Blackpool since 1960, says he has no problems with his tenants, but has heard of big problems for others in the resort.
He said: “If people don’t pay their rent there is nothing we can do. You can either go to the council or go through the courts. Either way it is a long and costly process.
“We want the council to take us back to the old system, where money come straight to us. We just think it would be beneficial all round if accredited landlords could receive Housing Benefit directly. The landlords and tenants would both prefer it that way.”
Blackpool Council defended the payment system and said it was not in a position to change back.
Julian Kearsley, executive director, business services, said: “The money paid to tenants is to meet the costs of providing a roof over their head. If this money is not spent on rent they face losing their home.
“Blackpool was a Pathfinder for this. Because this is a national scheme, the council has no option but to participate and it is not something we can remove ourselves from.”
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Weather for Blackpool
Thursday 24 May 2012
Today
Sunny
Temperature: 14 C to 20 C
Wind Speed: 12 mph
Wind direction: North west
Tomorrow
Sunny
Temperature: 12 C to 23 C
Wind Speed: 15 mph
Wind direction: East
