Universal Credit overhaul will affect rent payments from April
1 year ago | 23 comments
Universal Credit claimants should manage their own finances – Government
9:01 AM, 20th July 2026, 10 hours ago
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The government has claimed tenants on Universal Credit remain responsible for rent payments.
In a written parliamentary answer, the government confirmed that if tenants get into arrears, rent payments may be sent directly to their landlord.
Universal Credit is typically paid once a month directly to the claimant, who is then responsible for paying the landlord. However, the landlord can request a Managed Payment to Landlord (MPTL) as part of an Alternative Payment Arrangement (APA).
UC claimant should manage their own finances
In a written parliamentary question, Liberal Democrat MP Joshua Reynolds asked: “What assessment has the government made of the adequacy of protections for private landlords where Universal Credit housing costs have been paid to tenants but the rent has not subsequently been paid to the landlord”.
In response, Stephen Timms, minister for social security and disability, said: “The default position in Universal Credit is that claimants should manage their own finances, including payment of their rent. This encourages self-reliance and eases the transition back into work.
“Where a claimant is vulnerable or if they get into arrears, rent payments may be sent direct to their landlord, on their behalf. Decisions related to direct payments of rent must be based upon the claimant’s best interests.
“Tenants remain responsible for their rental liabilities, even where payment goes straight to their landlord.”
Tenants left in tears
As previously reported by Property118, the Department of Work and Pensions (DWP) sparked fury as Universal Credit (UC) applicants face extensive demands to confirm their eligibility.
One landlord told Property118 that some of his tenants have been “left in tears” as they can not comply with the list of demands.
One of the demands asks to see a full-body picture including the feet of the tenant standing in the doorway of the property.
Tags:
apply for universal credit rent, landlord issues with universal credit, rent arrears, UC claimant, Universal Credit, Universal Credit arrears form
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Member Since May 2024 - Comments: 149
10:48 AM, 20th July 2026, About 9 hours ago
“Decisions related to direct payments of rent must be based upon the claimant’s best interests”. Well that just sums up the government attitude. Perhaps decisions regarding prompt payment of rent should be made in the landlords best interest.
It won’t be long before there is an outcry because there are no private housing options available to UC claimants and tougher legislation to try to force us to take them in..
Member Since August 2013 - Comments: 150
11:02 AM, 20th July 2026, About 8 hours ago
Reply to the comment left by Jack Jennings at 10:48
What the Minister hasn’t addressed is the attitude and motive of tenants who use their AST agreement to gain access to housing cost assistance, with never any intention of using the sum to reduce or extinguish their rent liability. The Direct Payment scheme was set up to protect vulnerable tenants, where necessary, from repossession action, and, at the same time prevent public funds from being misused. Sadly, in areas like Birmingham and London, it’s the landlord who pays the price for tenant delinquency.
My latest members’ bulletin https://universalcreditadvice.com/articles/dwp-enhanced-reviews-hmo-tenants-and-wrongly-created-universal-credit-overpayments/ also highlights the worry and anxiety caused to tenants and landlords alike, when DWP’s “Enhanced Review” team become involved. In this case, the original award was terminated illegally, £29K in alleged overpayments were created, DW failed to respond to Tribunal Directions and nearly 1 year later conceded there was no merit in its position, with absolutely no apology or come back. Totally unaccountable!
Member Since May 2015 - Comments: 2264 - Articles: 2
11:10 AM, 20th July 2026, About 8 hours ago
Equally, landlords should manage their own finances, taking whatever steps are necessary to ensure that prospective tenants are able to pay the rent.
Member Since October 2020 - Comments: 1267
11:22 AM, 20th July 2026, About 8 hours ago
Actually I think that the Government somewhat sugar-coated their response. My understanding is that the housing allowance belongs to the tenant, with no legal obligation under benefits legislation to use it to pay rent.
Member Since May 2015 - Comments: 2264 - Articles: 2
12:12 PM, 20th July 2026, About 7 hours ago
Reply to the comment left by DPT at 20/07/2026 – 11:22
I believe that you are correct. Tenants have to prove that they have a tenancy and are awarded a sum to cover the rent. What they then do with the money is their concern. Landlord associations should be campaigning for the money to be ring-fenced for rent and for it to be a CRIMINAL offence for it to be used for any other purpose.
A challenge for the NRLA.
Member Since May 2014 - Comments: 158
12:27 PM, 20th July 2026, About 7 hours ago
`This encourages self-reliance and eases the transition back into work.`
This is the same nonsense LA`s came out with 15 years ago..`..you must treat HB claimants as if they`re in work..`
Did`nt work then won`t work now, claimants, generally, do not want to work & have no intention of doing so. Their lives are sufficiently comfortable to resist working.
Member Since August 2013 - Comments: 150
12:49 PM, 20th July 2026, About 7 hours ago
Reply to the comment left by DPT at 11:22
Yes, that is DWP’s view and to be fair to the majority of tenants, they do comply. But when payment is not made, the Direct Payment scheme should kick in. That’s what the courts expect and Judges have been known to instruct DWP to attend hearings where DP is not applied.
For the ones referred to in my earlier post who use the AST to gain access to the funds with every intention of misusing the funds, they should have their housing element suspended and then forwarded to the landlord to prevent further misuse.
Financially motivated fraud is “any act of intentional deception where a person or group tricks others for economic gain.” Landlords particularly in London and other big cities experience this daily
Member Since July 2013 - Comments: 103
5:23 PM, 20th July 2026, About 2 hours ago
What’s also very worrying is that if a tenant falsely claims HB , the council comes to the landlord for repayment even if the tenant hasn’t paid the landlord.
Member Since September 2018 - Comments: 3664 - Articles: 5
6:59 PM, 20th July 2026, About 24 minutes ago
can’t treat them like they are in work….because they aren’t.
If they were –
They would be able to pay the months rent in advance every month from their own income (not state provided) and they would be able to provide an employer reference.
So they are different and shall be treated as such because that is where the risk is – the fact they are no working.
The government only needs to look at the amount of rent arrears UC claimants are in. They have the numbers of TP deductions in place and the amount owed. The have the numbers of how many LL’s get direct payments because the LL has requested a UC47 due to rent arrears. They can look at the number of S8s due to rent arrears.
They have the stats, it just doesn’t suit the anti LL agenda…..