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DWP Pilots Scheme To Recover Universal Credit Arrears

June 16, 2015

Government officials are trialling a scheme to make it easier for landlords to recoup universal credit rent arrears by scrapping requirements to post letters.

The trial, which started last month, is being conducted by a number of social landlords including Golden Gates Housing Trust and the Department for Work and Pensions (DWP).

Under Iain Duncan Smith’s universal credit, which combines six benefits into one, tenants are paid their benefit for housing costs directly instead of to their landlord. Landlords have expressed concern that some tenants will be unable to manage their money and will fail to pay their rent.

If a tenant is in two months of arrears, their landlord can apply to have the rent payment switched back to them under an ‘alternative payment arrangement’ (APA).

However, until now, landlords have only been able to do this by sending a letter through the postal system. Housing associations have complained that this system is cumbersome and slow.

Under the pilot, landlords are able to send their APA requests through a secure email system. They still receive notice of rental payment from the DWP through the post.

Carmel Morris, senior financial inclusion officer at Golden Gates Housing Trust, said the initial results of the pilot were promising but that the DWP still had ‘a way to go’ on improving the administration of universal credit.

4 Comments leave one →
  1. sdbast's avatar
    sdbast permalink
    June 16, 2015 3:02 pm

    Reblogged this on sdbast.

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  2. Zoro at dwpexamination's avatar
    June 16, 2015 10:24 pm

    I wonder how many landlords will end up having to apply for ‘alternative payment arrangement’s’ (APA) then ?.

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  3. Mary's avatar
    Mary permalink
    June 17, 2015 7:10 am

    How many UC claimants have actually received their rental payments in the first place?! Too many according to assessments of the scheme, and this has led to some being evicted.

    Get that straight along with this pilot.

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  4. A6er's avatar
    June 17, 2015 10:12 am

    Reblogged this on Britain Isn't Eating.

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