Some authorities now pay the landlord or the agent direct for exactly the reasons you state.
The Local Authorities always used to pay the landlord direct, until 2008 when the Labour government of common sense changed the system so that the housing benefit was paid to the tenant instead. Apparently they wanted people to have more responsibility for their money!

Gradually, they have realised what a mess this has caused and are loosening the rules so that landlords can be paid direct. I just treat everyone the same these days and if they miss a rent payment for whatever reason they get their notice to quit!
I had a young single mum once who was in arrears with her rent as the DSS had put her under a periodic review. I kept phoning the DSS and they kept telling me that they were
'waiting for information', while the girl swore blind that she had sent the forms in. I went to the DSS office and picked up a set of forms then went to the house and asked her to fill them out and I'd drop them back to the office. When I got there the original forms were sat on the table and it was clear that she hadn't touched them!

She got some 'counseling' on why she shouldn't lie to her landlord and waste his time and she didn't last much longer in my house either!!
