DWP £629 Financial Boost for Universal Credit claimants: Only Few people know this loophole which is ‘not widely publicized’

If you’re claiming Universal Credit and struggling to manage your housing payments, there’s a lesser-known support option that might help ease the pressure. It’s called an Alternative Payment Arrangement (APA) — and it could make a big difference during the Cost of Living crisis.

This government-approved scheme isn’t widely advertised, but it allows vulnerable people to change how their Universal Credit is paid, helping them stay on top of rent and bills.

What Are Alternative Payment Arrangements (APAs)?

Alternative Payment Arrangements are special payment setups that are made when a person on Universal Credit is struggling with their finances. These arrangements can be tailored to meet individual needs.

Under an APA, you can request:

• Your rent to be paid directly to your landlord
• More frequent payments (instead of waiting a whole month)
• Split payments between you and your partner if you’re claiming as a couple

These changes are especially helpful if you’re behind on rent or find it hard to manage a lump sum once a month.

Who Can Get an APA?

You might be eligible for an APA if you’re facing any of the following difficulties:

• Rent arrears or facing eviction
• Severe debt or budgeting problems
• Homelessness or at risk of becoming homeless
• Living in supported or temporary accommodation
• Suffering from domestic abuse or violence
• Mental health problems
• Drug or alcohol misuse
• Learning difficulties

Even young people aged 16 or 17 or those who have left local authority care may qualify. Families with complex needs can also apply.

How Much Could You Get?

For joint claimants (couples), if one person is aged 25 or over, the maximum Universal Credit standard allowance is £628.10 per month. With APAs, some of this amount can go directly to your landlord or be paid more regularly to help with budgeting.

When Can Your Landlord Get Paid Directly?

To qualify for direct landlord payments, certain rules apply:

• You must owe rent equal to or more than two months
• Or, you must have regularly underpaid for over two months, building arrears equal to at least one month’s rent
• You also need to have previously received Housing Benefit that was paid straight to your landlord

Either you or your landlord can request this setup. If you’re making the request, you can:

• Use your online Universal Credit account
• Speak to your work coach or case manager
• Call Universal Credit on 0800 328 5644

While not many people know about Alternative Payment Arrangements, they are a powerful support option for those struggling to manage their finances on Universal Credit. If you’re worried about rent arrears or finding it hard to handle monthly payments, talk to your work coach or apply through your Universal Credit account. The help is there — you just need to know how to ask for it.

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