Universal Credit – Managed Payments for rent arrears
Universal Credit has been introduced over the last few years for working age claimants to replace a number of existing benefits including housing benefit. The Department for Work and Pensions (DWP) have issued guidance for both tenants and landlords but this was recently updated to include a new online service for landlords to request direct payments of rent or rent arrears. It replaces the existing UC47 process.
Alternative Payment Arrangements (APA) are available for claimants who cannot manage their single monthly payment and there is a risk of financial harm to the claimant and/or their family. APAs are considered on a case-by-case basis.
In considering an APA, a Managed Payment to Landlord for housing costs would be the first priority. This can be requested where the claimant is in arrears for their rent for an amount equal to or more than 2 months of their rent or has continually underpaid rent over more than 2 months and they have accrued arrears to an amount equal or more than one months rent.
Full details on other factors that may also allow a Managed Payment to be made are available on the DWP website:
The Managed Payment request can be made by the claimant or the Landlord. If the Landlord is making the request the new online service is available on this weblink: https://directpayment.universal-credit.service.gov.uk/
It is important for landlords and tenants to keep the lines of communication open with regards to rent payment issues but landlords have this alternative course of action if that becomes problematic.
