Assisting your tenant with a Universal Credit claim

Introduction

As a result of the coronavirus pandemic, more tenants than ever before find themselves needing to apply for Universal Credit. By July 2020, 4.2 million people had made a claim for Universal Credit, increasing by 1.7 million since February 2020. Given the increase, many of these tenants will have had no previous experience of applying for income support.

Due to this more landlords than ever before will be discussing how to navigate the Universal Credit system with their tenants. As a landlord you are well placed to assist your tenant in making their claim, ensuring that they receive financial support in a timely fashion and preventing debt from accumulating.

The purpose of this guide is to outline how you can help with these claims. It covers signposting on starting a claim, what sort of evidence the tenant will require, how it affects tenants who transition from other legacy benefits, as well as answering some other common questions about Universal Credit.

What income support does Universal Credit not replace?

Universal Credit only replaces the six legacy benefits above so a large number of other forms of income support continue to operate independent of Universal Credit. These include:

• Contributory based Jobseeker’s Allowance
• Contributory based Employment and Support Allowance
• Disability Living Allowance (DLA)/Personal Independence Payments (PIP)
• Attendance Allowance
• Carer’s Allowance
• Child Benefit
• Maternity Allowance
• Statutory Sick/Maternity Pay
• Industrial Injuries Benefit/Pension

DWP Resources

The DWP has created various resources for landlords and tenants alike on understanding Universal Credit. These are hosted on the government's 'understanding Universal Credit' website and directly on the Gov.uk website.

Understanding Universal Credit link

Gov.uk landlord guide to Universal Credit link

They have also produced a video guide for landlords on how to assist with claims.

A downloadable pdf guide for landlords is also available to help them assist their tenants with a claim.

How can my tenant make an application for Universal Credit?

The best way to make an application for Universal Credit is online. You can help by signposting your tenants to the correct website to start their application. 

https://www.gov.uk/apply-universal-credit

If your tenant cannot get online then the local jobcentre can help to support them by directing them to local resources to help make their claim. Alternatively, Citizen's Advice provide support with making a claim at:

https://www.citizensadvice.org.uk/helptoclaim/

There is also a phoneline for discussing a claim with the case manager, which you can help make tenants aware of:

0800 328 5644

What else will my tenant need to make an application?

Your tenant will also need a number of other things to be able to successfully make a claim. You can help prepare them by encouraging them to:

• set up a bank, building society or credit union account if they don't already have one;
• start the claim straight away to reduce the risk of delayed payment;
• consider budgeting support using tools like Money Advice Service's budget planner to help manage their benefits.
• set up a standing order for rent payment. Universal Credit by default is paid to the tenant. By setting up an automated payment when Universal Credit is paid this may increase the chances that the payment will be made in full and on time.

If the tenant does not have all the evidence they require for a claim, then you can assist by providing evidence of the tenancy agreement and the rental amount.

Will I be notified if my tenant starts a Universal Credit claim?

No, at present only social landlords are informed if the tenant begins a Universal Credit claim. To ensure you are kept up to date with the progress of the claim you should contact your tenant to ask them how their claim is progressing and, if necessary, provide any supporting evidence you can.

How much will my tenant be entitled to on Universal Credit?

This will vary depending on the tenant's circumstances but there are benefits calculators available that can estimate your tenant's entitlement. You can help by signposting them to calculators provided by:

Policy in Practice

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When will my tenant receive their Universal Credit payment?

Normally, payment will be received one month and seven days after starting their claim. This payment will cover the month after the claim was made. For example, if a tenant starts a claim on 23 December 2020 then they would expect to receive payment on 29 January 2021. This payment would be for the period from 23 December 2020 - 22 January 2021. After this payment is normally made on a monthly basis on the same day each month.

To ensure that tenants receive their payment within a month and seven days, it is essential that they sign up to the 'claimant commitment',  validate their identity and provide evidence of their savings, income and any rental costs they incur as soon as possible after making the claim.

How can landlords help ensure payment is made in a timely fashion?

As part of the tenant's claim they will need to provide evidence of their rental costs so that they can receive the appropriate amount for housing. This means evidence of the rental amount and proof of occupancy.

Normally this can be evidenced via a copy of the signed tenancy agreement. However, if the tenancy is outside of the fixed term or the agreement was a verbal tenancy then you can provide a letter confirming the details of the tenancy agreement for the tenant to use as supporting evidence.

What financial support is available to tenants while they wait for their initial UC payment?

If your tenant is struggling financially while they wait for their initial payment then you can help by discussing the option of applying for an advance on their payment.

Tenants can apply for an advance on their Universal Credit payment via their online journal or through their JobCentre Plus work coach. If this option is attractive, then you should make sure the tenant is aware that advance payments need to be made up from subsequent payments so they can budget accordingly.

What financial support can I encourage the tenant to look at if there will be a rent shortfall?

Where Universal Credit is insufficient to pay the full housing costs then tenants may qualify for a discretionary housing payment. This payment is made by local authorities directly so landlords can help by encouraging them to contact their own local authority to discuss the option.

Further information on discretionary housing payments

Can Universal Credit be paid directly to the landlord?

Yes but only in certain circumstances, typically once a tenant is in arrears with their rent. These are known as alternative payment arrangements (APA).

For further details on how you can make an application for an APA, please see our guide on this.

I would like to discuss my tenant's claim with DWP. How do I do this?

Once the tenant has claimed Universal Credit they will have access to an online journal. If they would like you to help them discuss their claim then you can ask them to give you permission to discuss the specific issue via this online journal. 

If you have an existing alternative payment arrangement you can ring the tenant's case manager on 0800 328 5644 to discuss this without an online journal entry but the case manager will only be able to discuss the APA.

My tenant is transitioning from Housing Benefit. How is this handled?

Once the tenant transitions to Universal Credit they will receive a further two weeks of Housing Benefit. This payment is made automatically and does not need to be paid back.

If you were receiving housing benefit payments directly, when your tenant transitions to Universal Credit the payment will also default to the tenant. Encourage your tenant to set up a standing order if they have not done so already to reduce the risk of late or missed payments once the Universal Credit payment is made.