LANDLORDS who have lost thousands from tenants pocketing their Housing Benefit say the law must change.

One Dalton landlord – who does not want to be named – says he has lost more than £6,000 to unscrupulous lodgers, while a Crosland Moor landlady has lost £5,000. Both say they are unlikely to be able to recover lost cash.

The Department of Works and Pensions (DWP) last year replaced Housing Benefit with the Local Housing Allowance (LHA).

Housing Benefit was normally paid to landlords, but LHA is paid to the tenant to pay their rent.

The DWP states this is so tenants ‘can take more personal responsibility for their housing, helping to prepare for when they move into work.’

But the two Huddersfield landlords say the system is being exploited by tenants who know how to cheat the system – and landlords.

John says he lost £5,000 in legal costs and rent trying to evict a tenant who was pocketing her LHA. He has already lost £1,400 from a current LHA tenant who has not paid him.

He said: “It’s the stupidest law ever brought in. The system does not work.

“There’s nothing to stop a tenant going into a property, living rent free, pocketing the money and moving on.”

Meanwhile, Jane says she lost £5,000 last year evicting a tenant who was pocketing her LHA.

She said: “I think it’s disgusting. When I rang the council to tell them what was going on they said all they could do was advise her to pay me!”

National Landlords Association senior policy officer Elizabeth Brogan said: “The DWP were warned about this by Shelter and the Citizens’ Advice Bureau when they piloted it and the Government just pushed it through.

“Social landlords have been worried sick about it so now it’s not going to be extended to them.

“So if it’s such a great idea why is it not being extended to social housing?

A DWP spokesman said: “We do know that there will be some customers who can’t manage their own rent payments, which is why there are comprehensive safeguards to stop these customers falling into unmanageable difficulties.

“If it appears someone is not paying their rent, landlords are encouraged to contact the local authority who pay the benefit”.