Universal Credit: Northern Ireland to continue direct payments to landlords

Published by 24publishing for 24dash.com in Housing and also in Central Government, Finance, Universal Credit

Tenants in Northern Ireland will still be able to have their housing costs paid directly to their landlord, it has been announced.

Unlike the rest of the UK, the country will also be able to split UC payments - which include six income-based benefits and tax credits - between two parties in a household. Households will also be able to receive UC payments twice a month rather than once as on the UK mainland.

Social Security Minister, Nelson McCausland (pictured), told the Northern Ireland Assembly about his success in winning the concessions during negotiations with Lord Freud, Welfare Reform Minister at the DWP (Department for Work and Pensions).

The DWP said that the changes were a matter for Northern Ireland and made no further comment.

Mr McCausland said: “I have been in negotiations with Lord Freud on alternative payment arrangements for Universal Credit in Northern Ireland. Throughout those discussions I have sought his agreement that the Universal Credit IT system will be enhanced to accommodate these alternative payment arrangements.

“I can now report that I have secured the agreement of Lord Freud to these changes so that when Universal Credit goes live in Northern Ireland, the housing cost element of Universal Credit will automatically be paid directly to landlords rather than the claimant. This is an important change as it will help to avoid rent arrears, with all the implications that can have for claimants and their families.

“I am also pleased to advise that in special circumstances, where necessary, we will be able to split the Universal Credit payment between the two parties in a household and make the Universal Credit payment twice every month rather than monthly."

Cameron Watt, Chief Executive of the Northern Ireland Federation of Housing Associations, said: “Minister McCausland deserves great credit for winning these flexibilities on welfare reform. In spite of the strong cross-party consensus in Northern Ireland on the need for a different approach from GB to reflect our particular circumstances, Ministers in London were pushing for a uniform system across the UK. However the Minister has listened to the strong case made by NIFHA and welfare groups and delivered for Northern Ireland.

“These changes will greatly help limit the impact of welfare reforms on low-income households. Without them, many tenants in Northern Ireland would have been set up to fail under the new system."

Currently, 100% of Northern Ireland Housing Executive tenants, 97% of housing association tenants and 74% of private sector tenants have their rent paid directly to their landlord.