A managed payment sends eligible housing costs to the landlord. An arrears deduction is a separate request. Neither necessarily pays the full contractual rent or clears old debt immediately.
Check the basis for the request
- Current guidance includes arrears equal to at least two months' rent, or continuing underpayment over more than two months with arrears of at least one month's rent.
- Other vulnerability factors can support consideration, so arrears are not the only possible basis. Use the actual circumstances and current criteria.
- Check the rent amount, frequency, property and tenant details before submitting. Exclude unsupported fees from the rent calculation.
Submit and follow the decision
- Use the official landlord service linked from DWP guidance and retain the reference.
- Distinguish a request for ongoing housing payments from deductions towards arrears. State what you are requesting accurately.
- The tenant can raise an objection under DWP's process. Keep the account and repair correspondence accurate and respond to requests for evidence.
Reconcile the arrangement
- Confirm when the first payment is actually received and which period it covers.
- Identify any rent gap still payable by the tenant and any separate arrears deduction.
- Report relevant changes through the appropriate route, including the tenancy ending, and do not continue treating payments as due after liability has changed.
Example: approval leaves an ongoing shortfall
For a fictional £850 rent and £700 housing payment, the tenant still needs a plan for £150 each month plus any agreed arrears contribution. Record each receipt separately so direct payment does not conceal a growing balance.
What to do
- Check the current criteria and prepare the rent evidence.
- Use the official Apply for a Direct Rent Payment service.
- Track the decision, first receipt, covered period and any shortfall.
Evidence to keep
- Application reference, rent schedule and information supplied.
- DWP decision, payment remittances and ongoing balance.
Sources and guidance
- Universal Credit alternative payment arrangementsDepartment for Work and Pensions · checked 20 October 2026
- Universal Credit: rented housing guide for landlordsDepartment for Work and Pensions · checked 20 October 2026