Universal Credit to be paid more regularly in Scotland

The UK government agreed to devolve social security powers to the Scottish Government last year. This includes new flexibilities around Universal Credit payments, but no control over whether to scrap the benefit.

New Universal Credit applicants who live in areas where a digital claiming service has been set up by the UK government will be given the option of twice-monthly payments instead of the current monthly payment system, once new regulations are brought into force.

The changes will also affect existing claimants once they are migrated to a new system.

The Scottish Government previously announced it would allow social sector tenants to pay their rent directly to their landlords from their Universal Credit payment. This will now be extended to the private rented sector.

A social security bill is due to be introduced to the Scottish Parliament this year and the government has pledged to set up a social security agency to manage the administration of benefits.

Jeane Freeman, social security minister, said: “As part of the social security consultation exercise last summer, we heard direct from people that paying the housing element of Universal Credit direct to landlords and receiving more frequent payments would be two important improvements to the Department for Work and Pensions approach. These are issues that people have repeatedly raised with us, highlighting the problems the current system can cause for budgeting.”

She added: “I am delighted therefore that I am able to address these concerns and go further, by extending the direct payment option to tenants with private landlords, and deliver these flexibilities for people in Scotland.”

The Scottish Government will launch a consultation “in the next few weeks” into the regulations needed to make these Universal Credit changes. It has not set a timetable for implementation, but a Social Security Bill is due later this year.

Mary Taylor, chief executive of the Scottish Federation of Housing Associations, said: “We welcome that the Scottish Government has prioritised introducing this flexibility as well as the ability to vary the frequency of payments, as these measures should help to ease the financial pressure on tenants.”

She added: “Our members will also benefit from these flexibilities as rent makes up the majority of housing associations’ income and is therefore vital in order for them to operate. Any reduction in rental income seriously threatens their ability to provide affordable housing and services.”

Graeme Brown, director of Shelter Scotland, said: “It’s welcome news that both social renters and private renters will have the option of having the housing support element of Universal Credit paid directly to their landlords. This is a more sensible, personalised approach than the current one-size-fits-all approach.”

He added: “The idea of bi-monthly payments instead of monthly is also a helpful move forward. The key now is to ensure a smooth transition to a system that delivers payments without delays.”