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DWP agrees to change Universal Credit direct payments schedule
Direct rent payments to social landlords for tenants claiming Universal Credit will change to be paid on a monthly cycle, the government has said.
The Department for Work and Pensions (DWP) has agreed to alter the way it administers Alternative Payment Arrangements (APAs), which see the housing costs element of Universal Credit channelled straight to landlords rather than being included in claimants’ monthly awards.
APAs are currently paid over 13 four-weekly cycles throughout the year, despite being deducted from tenants’ Universal Credit claims on a monthly basis.
Social landlords have complained this system is causing confusion because there is one four-week cycle where no APA money would be released.
As a result, debt could automatically appear on the rent account for tenants paying through Universal Credit APAs despite the right amount for the year being paid.
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A spokesperson for the DWP told Inside Housing: “We listen carefully to feedback about Universal Credit and continue to make improvements where necessary.
“We have heard the concerns of social landlords and have moved social landlord payments to a monthly cycle in 2019 as a result.”
In December, the DWP wrote to Kate Henderson, chief executive of the National Housing Federation (NHF), confirming the change.
Neil Couling, director general of Universal Credit at the DWP, said in the letter: “We are currently developing a solution to improve this aspect of the system. I hope to be in a position to deploy that feature in 2019.
“Once this feature is in place, I hope to prompt landlords to align their rent schedules with the payment of Universal Credit on a monthly basis.”
Jordane Shaw, policy officer at the NHF, said: “This is a very positive change – we’re pleased that the government has listened to the sector’s concerns and acted on them.
“This change will have a real impact on tenants, helping to minimise uncertainty and ensure that the benefits system works well for claimants.
“However, we still need more detail on payments that are made directly to landlords – it’s important that these align with claimants receiving the rest of their Universal Credit entitlements, and we look forward to an update on this from ministers.”
Update: at 17.02pm 07/01/10 a comment from the NHF was added to the story.
