Help!

UC is now looming for us here in Rotherham, and I wonder if I could pick your brains…

1] If landlords apply for APA’s re: rent, can they ask for full rent to be paid via UC, or just the part of the Housing Costs element that that is actually paid as part of the UC award?

2] Are the DWP actually providing any practical help to new UC claimants such as budgeting advice?

3] In respect of the ‘gateway’ conditions what part does Mandatory Reconsideration play? Is this classed as appealing a decision, or having a decision under revision?

4] What is meant by owner occupier and home owner? Is this someone who is mortgage-free, or does it include those who may have entitlement to help with mortgage interest?

5] What practical strategies are in place via Advisers for UC claimants? We are keen to build referral arrangements with JobClubs, IT training providers etc., but any other ‘tips’ would be welcome from those with direct experience of UC. 

Any help greatly appreciated!

Thanks,

Carl

1] If landlords apply for APA’s re: rent, can they ask for full rent to be paid via UC, or just the part of the Housing Costs element that that is actually paid as part of the UC award?

Landlord should only be paid as APA the amount of the housing costs element (ie this can be less than the actual rent for various reasons).  There was an argument being used by some landlords that the regulations allowed the full rent to be paid, but I read this week that DWP have acted to close this down as was not the policy intention.

2] Are the DWP actually providing any practical help to new UC claimants such as budgeting advice?

DWP are piloting ‘Personal Budgeting Support’ in 11 areas I believe, delivered by LAs and other advice providers including some social landlords.  Also digital support they recognise as needed.  I have heard mixed reports of what is being provided.  I suspect in reality the support will fall to stretched LAs, social landlords and existing advice providers.

3] In respect of the ‘gateway’ conditions what part does Mandatory Reconsideration play? Is this classed as appealing a decision, or having a decision under revision?

If you have challenged a relevant decision via MR/revision request you should fall outside of the UC gateway and claim legacy benefits.  According to other threads on here people are falling through the gateway that shouldn’t have and others are remaining outside that should have fallen in!

4] What is meant by owner occupier and home owner? Is this someone who is mortgage-free, or does it include those who may have entitlement to help with mortgage interest?

For the gateway this means that all owner occupiers fall outside gateway and claim legacy benefits.  Be careful of DWP ‘presentations’ using other unclear terms such as ‘householders’ , as renters do fall into the gateway.

5] What practical strategies are in place via Advisers for UC claimants? We are keen to build referral arrangements with JobClubs, IT training providers etc., but any other ‘tips’ would be welcome from those with direct experience of UC. 

Not got much too share, as we are early days too in Hartlepool, but good links with Jobcentre would be very good idea I think, and a digital inclusion strategy.  Landlords in North West may be able to offer more insight and have been v helpfully attending lots of conferences to share their experiences.

Hope this helps

Hi Carl

I’ll do my best to answer what I can but hopefully others will chip in…

1) I believe they can pay up to the amount included as the housing costs element in the calculation of the maximum award - so this would be the full rent if there are no service charges and no LHA/bedroom tax issues. It’s not about how much UC they are paid however as the award doesn’t specify how much goes towards rent. Below is a reply from the universal credit team about managed payments which may help -

Whether a managed payment is made depends on whether there is sufficient UC in payment to do so.  This is because UC is a single payment (not various amounts for means-tested out of work and in-work benefits plus housing benefit), and we make any deductions that are needed from the whole sum. So we add up the sums of money that are attached to the various UC elements the adults and relevant child dependents are entitled to, then

- make any necessary reductions in light of the capital, income and earnings available to the assessment unit, and in light of the benefit cap
- make any reductions necessary for conditionality sanctions attributed to the benefit unit
- take account of any fraud sanctions, and then any deductions, Managed Payment to landlord, third party deductions (this could include rent arrears), sums for overpayment recovery and repayments of any short-term/ budgeting advances etc.

(in that order) and what’s left is the actual amount of that will be paid to the claimant.

The managed payment of rent to the landlord (equivalent to the housing element) will be made if there is sufficient UC in payment. This may not be the full rent charged if the claimant has other income which in turn has reduced the UC award and Housing Cost Element of that award.

As long as the amount of the UC award was high enough to cover both of the deductions, the two would run simultaneously. If the amount to be deducted exceeds the available remaining UC , then the Managed Payment to the Landlord (rent paid direct)  would be paid first as it is a priority deduction.

2) From what I have ascertained speaking to social housing providers very few claimants get offered budgeting advice, and where it is, it tends to be outsourced eg the local debt advice centre!

3) yes - MR counts as challenging a decision and therefore you do not meet the gateway conditions if you have, for example, requested a MR on an WCA decision.

4) Owner occupier/home owner means you are the legal owner of the property regardless of whether you have a mortgage outstanding on it - so it does include those who may have entitlement to help with mortgage interest.

5) I don’t really have any experience of this - there have been a number of pilots running on ‘universal credit delivered locally - there is some info about where the pilots were here - https://www.gov.uk/government/publications/universal-support-delivered-locally-information-for-local-authorities - others might have more info.

Hope that is of some help.