What if I get into arrears?

What if I get into rent arrears?

If you are 2 months or more behind with your rent, your landlord can apply for:

  • An APA Managed Payment – which is an amount up to the value of your Housing Costs Element – for the on-going rental liability, and/or
  • A Third Party Deduction – worth between 10% and 20% of your Standard Allowance – for the arrears.

If you fall behind with your rent, speak to your landlord as soon as possible.

Example:
Salina, 52, has lost her job and found it difficult to keep up to 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 an APA Managed Payment and now her Housing Costs Element is paid straight to her landlord. She has agreed to pay £5 a week towards her arrears – which her landlord is happy with, but if she fails to pay this, they will apply for a Third Party Deduction too.

I’m not yet in rent arrears but I am struggling – can I have an APA Managed Payment set up?

If you are not yet in rent arrears with your rent but are worried that this may happen, talk to your Work Coach – you have the choice to have an amount of your Universal Credit award paid to your landlord. Be aware that this may not cover you full rent and you may still have to pay something yourself.

Example:
Tim, 36, applied for Universal Credit when he moved into his one bedroom flat. He’d been sofa surfing for a while and wasn’t sure how he was going to cope budgeting all these new bills. After he’d received his first payment of UC he was offered the choice of an APA Managed Payment to his landlord. He decided he would take up this offer.

Example:
Martha, 45, applied for Universal Credit when her second child was born to top up her wages and help to pay for childcare. Initially she decided she would have the full payment of UC paid to herself. But she’s missed a couple of week’s rent and is worried about her rent arrears. So she puts a message on her UC journal that she would like APA Managed Payments to her landlord. She receives a message back saying that this has been agreed. Martha just need to keep an eye on her UC award. If it ever drops below the amount of her monthly rent then her landlord will receive a payment that doesn’t cover the rent due and she will need to make up the difference herself.

You could also try for a Discretionary Housing Payment to help pay the rent that is due.
See Discretionary Housing Payments for more information.

How do I apply for an APA Managed Payment?

If you have recently made a new claim for UC then there should be an offer of APA managed payments to your landlord showing on your UC account – so you just need to login and accept that offer.

This drops off after 90 days, but you can still choose to have APA managed payment to your landlord at any time- just leave a message for your work coach.

Your landlord can also ask that an APA Managed Payment be set up if you are in 2 months’ or more rent arrears or they have reason to believe that you will struggle to pay your rent.

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. They explained their difficulties to their Work Coach who then set them up on an APA Managed Payment to Landlord. An amount up to the value of Housing Costs Element is now paid to their landlord.

Advice on money and debt

You can get help and advice from: