There are steps claimants can take that many people are not making use of
People on Universal Credit have been issued with DWP guidance on routes people can take if they are in financial difficulty. Universal Credit claimants tend to be in higher levels of rent arrears compared to residents paying by other means, according to the National Housing Federation (NHF).
The Department for Work and Pensions has been criticised by many for the impact the switch to Universal Credit has had on rent arrears. As of September last year, 45 per cent of residents paying rent through Universal Credit were in arrears.
The House of Commons Committee of Public Accounts has said “Universal Credit causes financial hardship for claimants including increased debt and rent arrears, and forces people to use foodbanks.” In particular, critics have attacked the initial five-week delay for a payment people face – which can have knock-on consequences with rent arrears.
Citizens Advice said in a paper in 2024: “The 5 week wait is a significant source of hardship. It means new Universal Credit claimants must experience a period without (sufficient) income – or take out a loan that leads to deductions from their regular Universal Credit payments.”
The use of a once-a-month system for UC payments has also contributed to rent arrears issues, critics such as the Work and Pensions Select Committee and senior Labour MP and welfare expert Frank Field. The DWP says the good news is there are some measures people finding themselves in this situation can take. A new Parliamentary update outlined one route claimants could consider.
The matter came to light after a query from, Tom Hayes Labour MP for Bournemouth East. He asked the Department for Work and Pensions (DWP) what targets it has for resolving housing arrears under Universal Credit, and how such cases are monitored. Stephen Timms Minister of State for the DWP gave a reply that offered an insight into what people could consider.
DWP statement on rent arrears
In a written reply issued on January 12, he initially knocked back the query about monitoring before explaining what options are on offer. “Rent is a contractual arrangement between tenant and landlord,” he said.
“DWP is not party to this arrangement and does not monitor whether the contractual liability is being honoured.” He then went on to offer further information that could be helpful for some claimants.
“If a customer is vulnerable or in arrears we can, if it is deemed to be in their interest, arrange for payment to be made direct to the landlord and for an amount to be sent towards arrears,” he said before adding: “There are no Departmental targets with respect to the amount of arrears outstanding.”
One key route that people can consider is available. These are known as Alternative Payment Arrangements (APAs).
Official guidance states that these arrangements are designed for people who cannot manage the standard single monthly Universal Credit payment and where there is a threat of financial harm to the claimant or their family.
APA options for Universal Credit claimants
The three APA routes here could help people who need additional support:
- split payment of an award between partners in a couple
- paying rent directly to their landlord, known as a ‘managed payment’
- more frequent payments: twice a month – or in exceptional circumstances 4 times a month – instead of once a month
More claimants are starting to make use of this process. The NHF said there had recently been an increase in claimants who had an APA from 29 per cent in June 2025 to 42 per cent in September.
But the process has challenges. The National Housing Federation said in its assessment for the period up to September 2025: “Setting up Alternative Payment Arrangements (APAs) continued to be challenging for residents and members. In their feedback, housing association staff shared experiences of supporting their residents transitioning to Universal Credit and some issues they encountered, as well as challenges administering payments and responding to queries day-to-day.”
How to get an APA
A government update issued in December 2025 said: “We expect most Universal Credit claimants will receive the single monthly payment and take responsibility for paying their own household bills on time, including their rent. But we recognise that some claimants will need extra support in managing this payment. Therefore, in some cases a managed payment might be appropriate.”
The government has listed examples of circumstances where APAs could be considered:
- the gov.uk website said: “is the claimant managing to pay their bills on time, particularly their rent, and have they fallen into arrears in the past, or are they currently in arrears?”
- the website asked: “do they think they will be able to manage a monthly budget, taking account of their income and outgoings over a calendar month?”
- “if the claimant is part of a couple, are they used to managing their money together and do they think they will be able to manage the single Universal Credit payment to the household?” the website asked.
- finally, the website listed: “is the claimant vulnerable (maybe they have addiction problems or have been homeless before)?”
