Why was my Universal Credit direct rent payment request denied?

Why was my Universal Credit direct rent payment request denied?

0:02 AM, 19th November 2024, About 3 days ago 14

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Hi, in short, my tenant is in significant arrears. They had a child in hospital for a while and I was sympathetic to their inability to sort out their payments during this time.

Despite receiving Universal Credit (UC) they have not made up their missed payments. I applied to UC for direct to landlord rent payments and a claim for the arrears and 24 hours later got a straight NO without any explanation.

The tenant receiving UC, is more than 2 months in arrears so why this response? I applied again, twice in fact, with the same response and on one of the letters back it was actually addressed to a previous managing agent and not me, the applicant. I am hitting a brick wall here!

Please can the Property118 community provide any advice?

Thanks,

Sageer


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David Houghton

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10:02 AM, 19th November 2024, About 2 days ago

This is the nature of UC. Best option serve ( not necessarily enforce) s21. Re apply for direct payment. If the arrears go up then apply for possessions order before Rrb becomes law. It's a pretty safe bet these 2 months arrears can already be written off

Private Housing Provider

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10:08 AM, 19th November 2024, About 2 days ago

The UC scheme is administered with lack of transparency and full of inconsistencies.

They (and any organisation now) can administer as they feel like and hide behind Gdpr not to be rational or held accountable for their practices.

I have found the rules (policies) they have for UC are frequently bent and manipulated to suit the specific case desired outcome. Typically to exploit private housing providers.

Mick Roberts

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10:40 AM, 19th November 2024, About 2 days ago

Yes disgusting isn't it, if u get on with the tenant, maybe copy something like my message below, getting her to put it on her journal if she agrees. As usual, we got UC to admit they made a mistake:

XXX,
I wun't let them get away with it as they are making people homeless & why your rents are expensive & Landlords packing up. It was easy under the old system.
Only put these messages on if you agree
14 Nov 2024
Dear UC,
You have sent my Landlord the email at bottom of this message.
He has not got a clue what you need or what has gone wrong as you haven't said. I have asked you previously to pay my Landlord, can you please tell me what the Landlord has not put which UC would like?
Is it anything to do with me & XXX have separate UC claims, but they are joined up for Housing Element?
I'll ask again, I wish you to pay him my total Housing Element due which I believe is £750 on the 27th or 29th Nov my payment date.
Please tell me what it will take for this to be actioned?
He has done what he believed to be the correct thing. I don't want the stress & budgeting of direct debits coming out my bank & taking the 'rent' money away, UC then being the cause of potential homeless.

Dear Mick,
We received your request for direct rent payments for XXX and XXX.
We are unable to set up direct rent payments to you.
Direct rent payments could not be set up for one or more of the following reasons:
• your tenants do not get Universal Credit
• your tenants do not claim housing support for the address you supplied
• your tenants must be in at least one month's worth of arrears, accrued over two or more months
• One of the tier 1 or 2 conditions haven't been met
We cannot give you specific details because of data sharing regulations.
You should speak to your tenants to make sure the correct information has been supplied to Universal Credit.
If you think you gave us the wrong information, such as the wrong house number you can request direct rent payments again with the correct information.
Your tenants need to pay their rent, and any rent they owe, directly to you.
You can make another request for direct rent payments if your tenants' circumstances change.

Reluctant Landlord

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10:47 AM, 19th November 2024, About 2 days ago

contact the DWP partnership manager in the area where your tenant is claiming and demand they explain why the UC47 has been refused.

Make a request again and also serve S21 to the tenant. Do not give reason for your notice but no harm in explaining that rent arrears are present. If the tenant wishes to continue with the tenancy it is advised they contact the DWP immediately to request direct payment to landlord themsleves.

rbinscotland

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11:27 AM, 19th November 2024, About 2 days ago

I agree I have hadvthe same problems. It's difficult to get anywhere with UC asvthey don't like to talk to landlords. However, on a seperate note I was paid for 3 years UC and the DWP then changed thier mind and said it shouldn't have been paid. I git a letter requesting the £23 k back.
It's with the courts and tribunal service at the moment.

Ranger78

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16:23 PM, 19th November 2024, About 2 days ago

Reply to the comment left by Reluctant Landlord at 19/11/2024 - 10:47
Thank you, this so helpful. I have made contact, so lets see where it goes. Much appreciated.

GlanACC

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20:28 PM, 19th November 2024, About 2 days ago

You are on a hiding to nothing, skip the S21 and go straight for an S8 as the tenants are more than 2 months in arrears, this is a mandatory ground for eviction.

I have been through this UC direct payment merry go round, the council will always use the data protection cop out and will stall as long as possible. They may pay off the arrears but the same will happen again.

Fizi247

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21:38 PM, 19th November 2024, About 2 days ago

I had a similar experience in May 2023 with an uncooperative tenant.

After seeking legal advice from my insurance-backed solicitors and NRLA membership advisory services, I was advised to terminate the tenancy.I extended the situation for an additional five months, hoping for improvement, but the tenant ultimately ceased paying rent when I served notice in May 2023.

I then applied online for direct payments of rent arrears under the updated process, which replaces the UC47. Initially awarded, the payment was subsequently declined within minutes. When I contacted Universal Credit (UC), they informed me that they could no longer assist because the information provided did not match their records.

The tenant had informed UC that she vacated the property immediately upon receiving the Section 21 notice. UC should have verified this with me, but they did not. Despite providing evidence over four weeks that the tenant was still residing at the address, my concerns were disregarded. After submitting a benefit fraud claim with no result, I contacted the Department for Work and Pensions (DWP) directly. They responded promptly, and the tenant vacated a month earlier than the notice expiry date.

It was later confirmed that the tenant had been claiming benefits fraudulently from another address while still residing in my property. UC did not compensate me for the lost rent, stating it was a civil matter, though it is illegal to discriminate against tenants on UC.

In August 2024, I received a call from the DWP fraud squad, confirming the tenant's guilt in benefit fraud. However, I received no compensation.

I emphasised to the DWP investigator that UC's inefficiency is problematic. He agreed, noting that landlords cannot even contact them directly.

Jason

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22:00 PM, 19th November 2024, About 2 days ago

Contact Denzel Matsaudza?

Special K

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0:21 AM, 20th November 2024, About 2 days ago

Reply to the comment left by Fizi247 at 19/11/2024 - 21:38
This was an enlightening read.
Thanks for sharing your experience.

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