Universal Credit Pilot Scheme to Tackle Rent Arrears

A scheme aimed at making it easier for Universal Credit claimants to have housing costs paid directly to social landlords is being trialled. Social landlords can request that the DWP redirects rent payments, but only if tenants accumulate two months worth of rent arrears – known as an ‘alternative payment arrangement’ (APA). The ‘Trusted Partner Status’ pilot will allow social landlords to identify tenants who they believe will struggle to keep up with rent payments. The DWP will then automatically redirect housing costs included in Universal Credit to social landlords, without first requiring a formal application. Protections are in place against social landlords who make large numbers of requests for APAs, purely for the purpose of rent collection. Should this be discovered, landlords will lose their ‘Trusted Partner Status’ and be reverted back to only asking for an APA after two months of missed rent payments. Read more on the Welfare Weekly website.