Universal Credit: Alternative Payment Arrangements Guidance

The Government has released guidance to providing Alternative Payment Arrangements for Universal Credit claimants who cannot manage their single monthly payment.

Universal Credit (UC) is paid in a single monthly sum, designed to prepare claimants for the world of work in which 75% of employees are paid monthly by encouraging claimants to take responsibility for their own finances.

However, some claimants have found the transition from the old legacy benefits system to Universal Credit more difficult than others. Those claimants who are struggling to manage their single monthly payment, can apply for some adjustments to make managing their money easier. These changes are called ‘alternative payment arrangements’ (APA).

The following APA are available to help claimants who need additional support:

• paying housing costs of Universal Credit as a Managed Payment (MP) direct to the landlord
• more frequent than monthly payments, e.g. twice per month
• split payment of an award between partners

The government Guidance provides all the information that claimants, or landlords with tenants in receipt of Universal Credit, need to know, including:

• What are Alternative Payment Arrangements?
• Managed Payments To Landlords
• More Frequent Payments
• Split Payments

CLICK HERE TO READ THE GUIDANCE