Managed payments to landlords

A claimant's landlord or their work coach can apply to have the housing costs element of universal credit paid directly to the landlord.

The claimant can also request this by talking to their work coach or case manager, or requesting this online or over the phone. In DWP policies this is known as a type of Alternative Payment Arrangement (APA) called a Managed Payment to Landlord (MPTL).

The DWP sets out the circumstances where it will consider a managed payment in section 2 of their guidance on Alternative Payment Arrangements. One common circumstance is where the landlord applies after the claimant has rent arrears of 2 months or more, but there are other factors the DWP can consider.

Notifying the claimant before a managed payment

The DWP should notify the claimant before they implement a managed payment to give them a chance to object, for example if they believe the landlord has supplied inaccurate information about rent arears or if there is an ongoing disrepair dispute.

The claimant normally has 7 days to register a complaint, and if a complaint is registered they will be given a further 7 days to provide the DWP with evidence.

Managed payments on UC statements

When a managed payment occurs, it will be noted as a deduction on the universal credit statement.

In this example, the DWP is awarding the claimant £407.14 in housing costs, but is deducting it from the award and giving it directly to the landlord. They have also put a warning on the statement noting that this will not cover the whole rent, so the claimant will have to pay the remainder themselves.

Managed payments and deductions for rent arrears

A managed payment is different from making deductions to pay off rent arrears, as it is about paying the benefit for the current rent directly to the landlord. A managed payment of the current rent and a deduction from the standard allowance to make payments towards rent arrears often run side by side.

More information on managed payments

Find out more about alternative payment arrangements and payments to landlords on Shelter Legal.

The DWP provide extensive guidance on how managed payments of housing costs to landlords work in the "paying rent" section of their guide for landlords. Read the universal credit and rented housing guide for landlords at Gov.uk.

Read more about alternative payment arrangements where universal credit is paid to other people or at unusual intervals at Gov.uk.