News

?Since the outbreak of COVID-19, Universal Credit has become a lifeline for many households. In the first two weeks of lockdown alone there were over 500,000 claims per week, more than nine times the usual weekly level of applications.

This week, Secretary of State Thérèse Coffey took questions from the Economic Affairs Committee on the economics of Universal Credit. As part of this she told MPs that she does not want to see a return to the widespread use of direct rent payments to landlords with tenants in receipt of housing benefit, despite praising the new online Alternative Payment Arrangement system which makes setting up direct payments much quicker.

Today (13th May 2020) The Department for Work and Pensions (DWP) has launched a new online system to allow rent payments, from tenants in receipt of Universal Credit, to be paid directly to Private Rented Sector (PRS) landlords. The new system for arranging these Alternative Payment Arrangements replaces the two existing UC47 forms cutting the processing time down from in excess of three weeks to just two hours in some cases.

This week, the final episode of the BBC2’s "Universal Credit: Inside the Welfare State" aired. Amid mounting criticism, DWP opened the door to BBC cameras. Among the various topics on the final episode, the problems associated with advance payments took centre stage. The final episode took place in Bolton, which has unusually high levels of unemployment for people aged between 17 and 24. Around 500 people move onto Universal Credit every month.

The Department for Work and Pensions (DWP) has published updated guidance for landlords with tenants in receipt of Universal Credit, providing information on Alternative Payment Arrangements for Universal Credit claimants who cannot manage their single monthly payment.

Landlords and tenants who do not understand the implications of coordinating the Benefit Assessment Period (BAP) of Universal Credit with the dates of their tenancy agreement are, in some cases, missing out on nearly a whole month rent, according to Caridon Landlord Solutions (CLS). CLS is calling on new Prime Minister, Boris Johnson, to review the process and make necessary changes.