Universal-Credit-Guide-for-Private-Landlords - Manual / Resource - Page 17
Third Party
Deductions for
Rent arrears
Q. Can rent arrears be recovered from
claimants through a deduction to their UC?
Q. How much will be deducted from my
tenants UC award, and paid to me?
Yes they can. In some cases the tenant may
have to consent to this deduction. This
would usually be where the total amount of
third party deductions from the UC award
exceeds 25%. More information can be
found online. Visit GOV.uk and look for “A
guide for landlords – rent arrears and
service charges”.
The amount you can receive through third
party deductions for rent arrears varies. It
can be anywhere between 10% and 20% of
your tenants personal allowance. The rate
used will depend on the claimant’s
circumstances. Only the claimant can
request a change to the percentage rate by
contacting DWP.
Q. Is there anything that must happen
before the deduction is considered?
Payment will be made into a nominated
bank account every 4 weeks in arrears. It
may take up to 6 weeks before the first
payment is received.
You must have made reasonable steps to
try and recover these arrears via your usual
procedures before submitting a request for
a third party deduction.
Q. How long will the deduction be taken and
paid to me?
The deductions will continue to be taken for
as long as UC is in payment at their current
address, of which you are the landlord, and
they remain in arrears.
17 Universal Credit/Information for Landlords
April 2018
www.gov.uk/universal-credit
DWP service centre 0800 328 5644