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A new report from the work and pensions select committee highlights that people in receipt of Universal Credit are at greater risk of falling into rent arrears, which is pushing those who are already facing difficulties into further debt and leaving them reliant on food banks.

?Since the outbreak of COVID-19, Universal Credit has become a lifeline for many households. In the first two weeks of lockdown alone there were over 500,000 claims per week, more than nine times the usual weekly level of applications.

This week, Secretary of State Thérèse Coffey took questions from the Economic Affairs Committee on the economics of Universal Credit. As part of this she told MPs that she does not want to see a return to the widespread use of direct rent payments to landlords with tenants in receipt of housing benefit, despite praising the new online Alternative Payment Arrangement system which makes setting up direct payments much quicker.

Responding to a House of Lords Economic Affairs Committee call for evidence into the economic impact of Universal Credit, Caridon Landlord Solutions highlighted the issues landlords and tenants have with the UC system and the consequences claimants face.

The Department for Work and Pensions (DWP) has published updated guidance for landlords with tenants in receipt of Universal Credit, providing information on Alternative Payment Arrangements for Universal Credit claimants who cannot manage their single monthly payment.