One of the biggest worries with Universal Credit is how vulnerable claimants will budget monthly when they are paid directly. The government argue that promoting personal responsibility is one of the key ways to help put work at the centre of the Benefit System.
The DWP have announced guidance to decision makers on personal budgeting support for the Universal Credit pathfinder areas running in the North West of England from April 2013. ‘There are two elements to personal budgeting support: Money advice and alternative payment arrangements’. Alternative payment arrangements would be provided in this order-’Paying housing costs (rent) directly to landlords or making more frequent than monthly payments or splitting payment of an award between partners.’
The guidance states that factors which are likely to lead to alternative payment are ’Learning difficulties including problems with literacy and/or numeracy , Severe / multiple debt problems, In Temporary and / or Supported accommodation, Homeless, Domestic violence / abuse, Mental Health Condition, Currently in rent arrears / threat of eviction / repossession, Claimant is young either a 16/17 year old and / or a Care leaver , Families with multiple and complex needs.
It’s likely that any alternative method will be temporary and subject to review.
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