Alternative Payment Arrangements

 

Alternative Payment Arrangements

Your Universal Credit is usually paid as a single lump sum, into the account of your choice on a monthly basis.

After your first payment you will have the choice of:

  • Continuing with monthly payments (usually paid on the same date each month) or being paid twice monthly
  • And if you are a tenant, having an amount of your UC (up to the value of your Housing Costs Element) paid to your landlord.

These are called Alternative Payment Arrangements (APA).

There is also a third APA – where, in certain circumstances, the UC payment can be split between a couple.

When you can get an Alternative Payment Arrangement

 

Housing Costs – APA Managed Payment to Landlord

It is your responsibility to make sure your rent is paid.

Make sure you prioritise your rent otherwise you could risk losing your home.

If you are claiming Universal Credit in Scotland, then you can choose to have an amount of your Universal Credit award – up to the value of your Housing Costs Element – paid direct to your landlord under the Alternative Payment Arrangements scheme. It’s often called an ‘APA managed payment’. You do not need to be in rent arrears.

Your landlord, in certain circumstances, can request an APA Managed Payment.

Where an APA Managed Payment is in place the DWP will, at the end of each Monthly Assessment Period deduct an amount from your UC award (up to the value of the Housing Costs Element) and pay this directly to your landlord.

IMPORTANT: An APA Managed Payment to your landlord may not cover your full rent – you may be responsible for paying something to your landlord yourself. Contact your landlord to discuss any payments you need to make.

 

Example:
Wayne and Carol have four children and have found it difficult to manage their money since the Benefit Cap started to affect them, meaning their benefits were drastically reduced. Wayne had been getting Employment Support Allowance (ESA) because of his health difficulties but has been found fit for work so they claimed Universal Credit. They chose to stick with monthly payments to begin with but are struggling to budget monthly and are worried they will fall behind with their rent so explained their difficulties to the Work Coach who then set them up on a Managed Payment to Landlord APA. An amount for their rent is now sent to their landlord (up to the value of their Housing Costs Element).

Example:
Salina, 52, has lost her job and found it difficult to keep up with her rent payments. She thought she’d get another job quickly so didn’t apply for Universal Credit straight away. By the time she applied she was nearly three months behind with her rent. Her landlord applied for a Managed Payment to Landlord APA and now an amount for her rent is sent to their landlord (up to the value of her Housing Costs Element).

Twice Monthly Payments

After your first payment you will have the choice of:

  • Continuing with monthly payments (usually paid on the same date each month) or being paid twice monthly
  • And if you are a tenant, having an amount of your UC (up to the value of your Housing Costs Element) paid to your landlord.

Where the date you are due to be paid falls at the weekend or on a bank holiday then you will be paid on the last working day before this.

Example:
Julie, 19, has difficulties with reading and writing and with numbers. She finds it hard to manage money and is worried about getting her Universal Credit paid all in one payment at the end of the month. After her first UC payment she is given the option to receive her UC payments twice monthly and accepts the offer.

IMPORTANT: If you opt for twice monthly payments then:
This is not the same as fortnightly payments i.e. not all the payments you receive will be 14 days apart.
You will only receive half of your UC award when your next payment is due and then the other half 2 weeks later. Your next payment will then be made 7 days after the end of your Monthly Assessment Period (or a day or two earlier if that would fall to be paid at the weekend) and then the other half 2 weeks later.
This means that some payments could be up to 20 days apart. Speak to a Benefits Adviser who can help you work out when to expect your payments.

Splitting the UC payment between a couple

In certain circumstances a UC payment can be split between a couple – if you think this would be helpful then speak to a Benefits Adviser who may be able to help you organise this.

Example:
Natasha’s partner Charlie is very controlling and won’t let her access any of their money. They are getting into difficulties because he gambles and there isn’t always enough money from his wages or their Universal Credit – which goes into his bank account – to pay the rent. She asks the Work Coach if any of the Universal Credit can be paid to her instead – she agrees to split the payment so that Charlie only gets the single rate Standard Allowance, an amount for their rent is sent to their landlord – all the rest goes into Natasha’s bank account.

Advice on money and debt

You can get help and advice from: