Landlords body welcomes change to Universal Credit ‘direct payments’

U-turn on Universal Credit 'direct payments'
RLA welcomes 'direct payment' U-turn

The Residential Landlords Association has welcomed government changes to Universal Credit which mean that landlords no longer require tenants’ consent when applying for Alternative Payment Arrangements, or APAs.

Until now ‘explicit consent’ was required from the tenant to do this, meaning that tenants could delay or refuse consent, leading to substantial rent arrears building up.

As was the case with housing benefit, if a landlord can prove that the tenant is in arrears of two months or more, then payments will be made direct to the landlord.

Chris Town from the RLA commented, “The latest news regarding APAs is a major step in the right direction, and will improve the operation of Universal Credit for landlords and tenants. That said, further reforms are still needed and we will continue to work with the department to make Universal Credit work better for landlords and tenants alike.”


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