What are Direct Payments?

Universal Credit (UC) is normally paid directly to the tenant, who is then responsible for paying their rent. However, in certain circumstances, landlords can apply for the housing element of UC to be paid directly to them via an Alternative Payment Arrangement (APA).

When Can You Apply?

You may be eligible to apply for direct payments if:

• The tenant is 2 or more months in arrears
• The tenant is at risk of losing their home due to rent arrears
• The tenant has difficulty managing their finances (e.g. addiction, mental health issues)
• The tenant has a history of not paying rent
• The tenant has requested direct payments themselves

How to Apply

To request an Alternative Payment Arrangement:

• Contact the DWP Service Centre handling your tenant's UC claim
• Provide evidence of rent arrears (rent account statement, correspondence)
• Complete the UC47 form (Landlord Request for a Managed Payment) — available from DWP
• Submit the form to the relevant UC Service Centre

You will need your tenant's consent in most cases, or evidence that they are vulnerable or in significant arrears.

What Happens Next?

• DWP will assess your request and contact the tenant
• If approved, the housing element will be paid directly to you
• Arrears deductions may also be made from the tenant's UC payment and paid to you
• DWP will notify you of the decision in writing

Arrears Deductions

Where a tenant is in arrears, DWP can deduct up to 20% of the standard allowance from the tenant's UC payment to repay arrears directly to you. This is in addition to the ongoing housing element payment.

Important Considerations

• Direct payments do not guarantee the full rent — UC housing costs may not cover the full rent amount
• The Local Housing Allowance (LHA) rate may be lower than your rent
• You must notify DWP immediately if the tenancy ends
• Overpayments may be recovered from you if you receive payments after the tenancy ends

Useful Contacts

• DWP UC Landlord Line: 0800 328 5644
• UC Online Portal: www.gov.uk/universal-credit
• Shelter Landlord Advice: www.shelter.org.uk