A new online system to allow rent payments, from tenants in receipt of Universal Credit, to be paid directly to private landlords has been launched by the Department for Work and Pensions (DWP). 

The new system for arranging these Alternative Payment Arrangements replaces the two existing UC47 forms cutting the processing time down from in excess of three weeks to just two hours in some cases.

Sherrelle Collman, managing director of Caridon Landlord Solutions, which provides specialist advice on Universal Credit and Housing Benefit to private landlords, letting agencies and housing association, has worked alongside DWP to pilot the new system. 

Collman said: “This is excellent news for landlords and tenants, as well as all those new claimants who have recently been forced to sign up to Universal Credit due to Covid-19. 

“For those struggling to manage their finances, it provides a much simpler route for tenants and landlords to request that the housing element of Universal Credit is paid directly to their landlord.

“The old paper forms, which required landlords to fill out, scan and email or post back, were not only time consuming but also took weeks process, sometimes getting lost along the way with rent arrears simultaneously mounting up.  

“Given how stretched DWP’s resources are as a result of the pandemic, it is fantastic that they have managed to launch this important improvement to the system which will help those struggling to manage their finances.”