How and when universal credit is paid
Universal credit is normally paid into the claimant's bank account once a month. The DWP has the power to alter this arrangement.
How universal credit is paid
Universal credit payments are made into a claimant's bank, building society or credit union account.[1] A claimant will need to provide their account details when they claim.
Find out more about how to open and manage an account.
If the claimant cannot open or manage an account, they can contact the universal credit helpline to arrange a different way of getting paid.
Payment exception service
Where a person cannot use an account to receive universal credit, they might be able to use the Payment Exception Service to collect payments.
The service will send the claimant a payment card or voucher code. The code might be sent by email or text message.
The claimant can show their card or code at a Paypoint outlet or Post Office to collect their payment. They will have to show one original document as proof of identity, such as a current passport or a benefit entitlement letter.
A claimant can collect the full amount they are owed in one visit. To collect an amount over £100 they should use their card or code more than once during their visit.
Someone collecting money on the claimant's behalf will need to provide:
the payment card or code
proof of their identity
proof of the claimant's identity
Payments not collected within 90 days will expire.
How often universal credit is paid
Universal credit is paid every calendar month in arrears. The DWP has the power to pay certain claimants more frequently.[2]
Alternative payment arrangements and payment to landlords
Part or all of a claimant's universal credit entitlement can be paid to a third party, for example to the landlord. Where this is made to a landlord, it is known as a managed payment to landlord or MPTL. An MPTL is one type of alternative payment arrangement (APA) in which universal credit is paid in a different way to usual. Other types of APA are split payments in which universal credit is split between both partners in a claim and 'more frequent payments' than monthly.
An APA can be arranged at the discretion of the DWP to protect the interests of:[3]
the claimant
the claimant's partner
a child or qualifying young person the claimant or their partner is responsible for
a severely disabled person for whom the claimant has significant caring responsibilities
DWP have issued guidance on the factors which will be considered when a claimant requests an APA.[4] Some social landlords are 'trusted partners' of the DWP. They will be able to request managed payments online and will not be required to provide the same level of evidence as other applicants.
The Government has said that where a private sector housing benefit tenant moves on to universal credit, DWP will check whether and if so why they previously had their housing benefit paid direct to the landlord to 'ensure that those who need the support get it from the outset'. In addition, where a private landlord supplies evidence of two months' rent arrears, a managed payment will be implemented without the claimant's consent.[5]
More information about alternative payment arrangements can be found in the DWP guidance for landlords.
Universal credit waiting periods
Advance payment of universal credit
Applicants in financial need due to the delay in the payment of universal credit may be entitled to a universal credit advance.[8] This could be the case where a delay in payment would lead to rent arrears. A universal credit advance is a recoverable advance payment of universal credit and can be up to 100 per cent of expected entitlement.[9] No interest is payable when repaying the advance. An advance will only be awarded where the DWP believes the claimant can afford to make the repayments.
From July 2018 a claimant can request an advance payment online. Previously claimants had to call a service centre to claim an advance.
For advance claims made before January 2018, the amount will be recovered over a maximum six or 12 month period, depending on the whether the advance payment claim was made in connection with a new application for universal credit, a transfer from other benefits or a change in circumstances.[10] DWP have stated that the maximum period of repayment of all advance claims made in January 2018 and after will be 12 months.[11] Repayments begin from when the claimant receives their next payment of universal credit, although an applicant can ask for a delay of up to three months to be applied.[12]
There is no right to an appeal against a decision not to award an advance of universal credit. A claimants can ask for the decision to be reconsidered but should do so as soon as possible after being notified of the refusal, ideally at the same time. Otherwise the only way to challenge a refusal would be through judicial review.
Last updated: 3 January 2023