1. Housing Benefit Direct Payments Alternative Payments under UC December 2015

2. Direct Payments Local Housing Allowance is usually paid to the claimant and not to the landlord. However, we may be able to pay it direct to the landlord in some cases. [1] Rent arrears – 8 weeks or more [2] The ‘Safeguard’ Procedure

3. [1] Rent arrears – 8 weeks or more If a tenant builds up rent arrears of eight weeks or more, we must make direct payments to the landlord, unless it is in the overriding interests of the tenant not to do so. If a tenant has not paid their rent for five weeks or more please let us know and provide evidence of the unpaid rent, so that we can contact your tenant and consider paying you the future payments.

4. 1] Rent arrears – 8 weeks or more Landlords must provide evidence to show the level of rent arrears including any payments that have been made and the amount of rent outstanding. Landlords are encouraged to contact the Benefits department when rent arrears are equal to five weeks’ rent. This allows the Local Authority time to gather information before the arrears reach the equivalent of eight weeks’ rent.

5. [2] The ‘Safeguard’ Procedure Local Housing Allowance may be paid to the landlord if: the Local Authority considers that the claimant is likely to have difficulty managing their financial affairs, or the Local Authority considers it improbable that the claimant will pay their rent, or From April 2011 an affordable rent has been negotiated with a Landlord to secure or retain a tenancy.

6. [2] The ‘Safeguard’ Procedure “the claimant is likely to have difficulty managing their financial affairs.” The phrase “is likely” means that there must be a degree of certainty that the claimant will be unable to manage their affairs. It is not sufficient for there to be a possibility that they may have difficulty managing their affairs or, because people in certain circumstances carry a risk, that they may be unable to manage their affairs.

7. [2] The ‘Safeguard’ Procedure “improbable that the claimant will pay their rent” “Improbable” means that there must be a degree of probability that the claimant will not pay their rent. It is not sufficient for there to be a possibility that the claimant may not pay their rent. Many tenants, regardless of their benefit status, carry a risk that they may not pay their rent.

8. [2] The “Safeguard” Procedure Affordable rent to secure or retain a tenancy. From 1 April 2011 an additional safeguard enabled local authorities (LAs) to make payment direct to the landlord where they consider that it will assist the customer in securing or retaining a tenancy. For a tenancy to be secured or retained it is implicit that the rent should be affordable to the tenant and there should be evidence that negotiations have been made with the landlord to reduce the rent to a level within the LHA rate for the property.

9. [2] The ‘Safeguard’ Procedure The changes to LHA rates introduced from April 2011 meant that some customers had a shortfall between their HB entitlement and their contractual rent. This provision facilitated negotiation as some landlords may be likely to agree a reduction in the contractual rent in exchange for benefit being paid directly to them. The tenant can only be accepted as being able to retain or secure a tenancy if the rent is at a level the local authority considers they can reasonably afford whilst in receipt of HB. If the tenant continues to have a shortfall which they cannot meet they will be unlikely to be able to meet their rental commitment and will be at risk of eviction. In these circumstances, they will not be able to retain the tenancy and so the safeguard will not apply.

10. [2] The ‘Safeguard’ Procedure Examples of when the safeguard policy may apply due to “difficulty managing financial affairs” and/or “improbable that the rent will be paid.” People with learning difficulties People with medical conditions that seriously affect their ability to manage on a day to day basis People with addictions to drugs, alcohol or gambling where this affects their ability to manage their financial affairs This list is not exhaustive. Each case will be looked at on its own merits.

11. Universal Credit Live in Waltham Forest for single people from 18 th May 2015. Combining all of the following: Housing Benefit Jobseekers Allowance Working Tax Credit Child Tax Credit Employment and Support Allowance Income Support

12. Alternative Payment Arrangement Alternative Payment Arrangements can be considered at any point during the Universal Credit claim Alternative Payment Arrangements will only be considered for those claimants who cannot manage the single monthly payment and as a result there is a risk of financial harm to the claimant and/or their family. The Universal Credit Agent will consider a number of factors and evidence provided to decide if an Alternative Payment Arrangement is appropriate.

13. Alternative Payment Arrangement The Universal Credit Agent acting on behalf of the Secretary of State makes the decision whether to award an Alternative Payment Arrangement taking account of numerous factors. For example:  Is the claimant managing to pay their bills on time, particularly their rent, and have they fallen into arrears in the past, or are they currently in arrears?  Do they think they will be able to manage a monthly budget, taking account of their income and outgoings over a calendar month?  If the claimant is part of a couple, are they used to managing their money together and do they think they will be able to manage the single Universal Credit payment to the household?

14. Alternative Payment Arrangement Alternative Payment Arrangements will be considered in the following order of priority: 1. Paying the Universal Credit housing element to the landlord will be the first priority where it is part of the Universal Credit award, in order to safeguard the claimant’s home. The Managed Payment of the housing costs element to the landlord would always be deducted and paid first as the priority APA. 2. Secondly, and where appropriate, the Universal Credit Agent should consider if a More Frequent Payment is needed. 3. Thirdly, the Split Payment of an award between partners should only be considered in certain circumstances, for example: financial abuse where one partner mismanages the Universal Credit payment  where domestic violence is an issue and the couple decide to remain together in the same household, but only one claim to Universal Credit is made

15. Alternative Payment Arrangement In summary a claimant could therefore have any of the following combinations:  Housing element paid direct to landlord only  More Frequent Payments only (for non-householders)  Split Payment only  Housing element paid direct to landlord and More Frequent Payments  Housing element paid direct to landlord and Split Payments  More Frequent Payments and Split Payments (for non-householder couples where appropriate)  Housing element paid direct to landlord, More Frequent Payments and Split Payments The above aims to support those claimants over time in developing their budgeting capability and at the same time safeguarding their home.

16. Alternative Payment Arrangement Who can request a Managed Payment of the Universal Credit housing element to the landlord? The claimant, their representative or the landlord can make this request. If the claimant is making the request, this can either be:  during the Work Search Interview with their Jobcentre Plus work coach, or  by phoning Universal Credit on 0345 600 0723* If the landlord is making the request, this can either be:  by phoning Universal Credit on 0345 600 0723* and requesting a rent arrears form, or  by accessing and downloading the Rent Arrears form via GOV.UK – Universal Credit: Rent Arrears Form

17. Any questions?