New system to ‘revolutionise’ direct Universal Credit payments to landlords

Croydon-based software firm says payment times will be cut from weeks to two days after launch later this year in partnership with DWP.

A new online system that enables private landlords to be paid rent from tenants in receipt of Universal Credit in as little as two hours, instead of the usual three weeks, is to be launched later this year.

Developed by Croydon-based Caridon Landlord Solutions, the launch will follow an extended pilot of the platform, which has been developed alongside the The Department for Work and Pensions (DWP).

“We have been working with DWP to develop an agile online system, making suggestions for adjustments to ensure it is as user friendly and efficient as possible,” says the company’s MD  Sherrelle Collman (left).

“Landlords are now receiving confirmation of direct payments within 48 hours which is such an incredible improvement.”

The system replaces the current much-hated UC47 forms landlords have had to fill in to redirect payments to their bank accounts via the Alternative Payment Arrangement System, rather than those of their tenants.

Caridon Landlord Solutions, which works with private landlords, letting agents and housing associations to help them recover DWP payments due to them, says the UC47 forms have been the main cause of problems with Universal Credit within the PRS.

UC47 forms

“[This has been] discouraging landlords from letting to tenants in receipt of Universal Credit and similarly making it difficult for tenants to keep hold of homes they wish to stay in,” the company says.

“Caridon believes that the paper forms are taking weeks to be processed, sometimes getting lost along the way and all the while rent arrears are mounting up.

“We have been working closely with DWP, not only to get payments made directly to landlords where necessary, but also to speed up the process so that landlords have greater confidence in the system.”

Read more about Universal Credit.

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