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With the advancement of how accounts are used to make purchases and to pay bills, comes the possible use of ‘rent cards’ for those who are dependents of housing benefits.
The use of rent cards has been thought about by Demos to ensure that the money would go straight for paying rents. Payments will then be paid directly to the landlords instead of the tenants, thus preventing the increase of arrears.
Though this plan has not yet been passed, pre-payment cards are already being used to manage budgets on social care areas being used by local authorities.
The rent cards are set to help the government as well to help control how welfare payments are spent. This is an advantage for most of the landlords as this will ensure direct payments to them.
With a lot of things still to consider, it’s not likely that pre-payment cards will be used for paying rents anytime soon, but these cards can protect both landlords and tenants.
The ‘rent cards’ help the landlords receive payments on time and tenants will be able to budget other expenses as the expense for rent will already be safe.
The idea of these ‘rent cards’ are also considered to be used for the Universal Credit which will then be introduced this coming autumn.
There will still be a need from the government to see whether these pre-payment cards will help both the landlord and tenant achieve the main purpose of the card: to provide security and availability of rent payments on time and a direct payment to the landlords.
Once this process has been followed and it turns out to be a success, it will solve the current mess for housing benefit payments!