Middlesbrough council has pulled out of a ground-breaking housing benefit pathfinder months before it was due to begin because of a clash with another pilot.
The council has left the pilot, where a flat rate of housing benefit is paid direct to tenants, because it could disrupt the region's housing market renewal study.

Middlesbrough is part of the Tees Valley's shadow housing market renewal group. The council feared that any change in rents prompted by the benefit pilot could skew the data for the market renewal strategy.

Martin Baker, the council's benefit manager, said: "Tenants may come into Middlesbrough [from neighbouring areas] and this may distort the figures."

The Department for Work and Pensions said it would not look for another council to replace Middlesbrough in the benefit pilot.