Up to 80,000 people in 10 test areas who rent privately will be given a housing allowance from next year related to average local rents, their income and family size rather than based on the rent of individual properties.
The allowance will be paid to tenants instead of direct to landlords, allowing them to shop around for cheaper rents or to top up the housing allowance.
Andrew Smith, work and pensions secretary, said it would remove incentives for corrupt landlords to collude with tenants over high rents.
Tenants on benefit will have an incentive to negotiate their rent for the first time. The approach could be rolled out nationally in a few years to all tenants in the private rented sector, and then for housing association and council rents.
Financial Times 18/10/02 page 6
The Daily Telegraph 18/10/02 page 11
The Independent 18/10/02 page 8
