Universal Credit for landlords
The part of Universal Credit which is paid for housing is normally paid directly to the tenant. It is the tenant's responsibility to pay rent to the landlord.
For private rented sector tenants, the housing element is either the eligible rent, or the Local Housing Allowance rate (LHA), whichever is lower.
For social sector tenants, the housing element is their actual housing costs, not including any service charges which are not covered by Universal Credit. This payment will be reduced by any under occupation charge.
For more information on Universal Credit, please see GOV.UK’s guidance.
Alternative Payment Arrangements
Universal Credit payments are a significant change to the way most benefits are currently paid.
Alternative Payment Arrangements are available to claimants who are identified as needing additional support. If the claimant has built up rent arrears, the Department of Work and Pensions will consider paying the housing element of Universal Credit directly to the landlord as a managed payment.
A managed payment to a landlord can be considered when:
- a claimant owes 2 months’ rent or more to their landlord - a third party deduction to recover the rent arrears can also be requested at this point
- a claimant owes the landlord one month’s rent or more because they have continually underpaid
A landlord can request a managed payment by:
- completing the Rent Arrears form on GOV.UK
- phoning Universal Credit on 0345 600 0723 and request a rent arrears form