Source · Select Committees · Work and Pensions Committee
Recommendation 26
26
Paragraph: 114
Some people in financial distress during the wait for their first payment can face a...
Recommendation
Some people in financial distress during the wait for their first payment can face a difficult choice between using their Advance to pay their housing costs, or to cover other essential costs, such as food or heating. No one should find themselves in arrears—or facing eviction—during this time. We recommend that anyone claiming an Advance should be given the option, at the outset, of having the housing element of the Advance paid directly to their landlord. This would ensure that claimants’ housing costs are covered during the wait for their first payment, and that they will not face the risk of falling into arrears or eviction as a result.
Paragraph Reference:
114
Government Response
Not Addressed
HM Government
Not Addressed
The committee should recognise that the housing element of a UC payment may not cover all the cost of the rent incurred. Managed Payments to Landlords (MPtL) are already available on request to any claimant from the start of, or during their claim. Such arrangements can also be requested by the landlord or DWP staff, where it is clear such an arrangement is necessary or would be beneficial. As such, the Department believes that sufficient provision is already in place to achieve the outcomes the Committee has suggested. We have worked to facilitate such arrangements through the new Apply for a Direct Rent Payment site, a new online service which can be utilised by landlords to enable the direct payment of a claimants’ rent in UC. This replaced a previously time-intensive clerical process and enables direct payments, where appropriate, to be implemented more easily. The Department also works closely with social landlords to improve their understanding of UC processes and encourage monthly tenancies as standard. UC promotes personal responsibility and expects the majority of tenants to manage their finances, including their own housing costs, whether they are in or out of work. But, for those tenants for whom the UC payment structures represent a significant challenge, the Department provides specialist support for personal budgeting, money guidance and debt advice, including through the Money and Pensions Service. Diversion of the housing element of Advances could result in landlords pressuring vulnerable claimants to request a larger Advance than is necessary to cover their financial needs. Claimants, or the landlord if a MPtL is in place, will receive housing costs support at the end of the first assessment period and monthly thereafter. As we have mentioned earlier in our response, our priority is to ensure APAs are considered and implemented on a case by case basis, which allows Work Coaches or Case Managers to consider and respond to the specific financial needs of individual claimants. We have taken a number of actions to improve learning for Jobcentre colleagues to enable them to proactively identify, support and signpost customers with complex needs.