{"id":105685,"date":"2025-03-08T10:00:00","date_gmt":"2025-03-08T10:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=105685"},"modified":"2025-03-08T09:44:53","modified_gmt":"2025-03-08T09:44:53","slug":"rent-arrears-dwp-debt-management-support","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/rent-arrears-dwp-debt-management-support\/","title":{"rendered":"Struggling With Rent Arrears? DWP Debt Management Support Explained"},"content":{"rendered":"\n

Struggling to pay rent can be a significant challenge, particularly for those receiving Universal Credit or other benefits. The Department for Work and Pensions (DWP) offers several types of financial assistance to help tenants manage rent arrears and avoid eviction. However, accessing this support requires taking specific steps.<\/p>\n\n\n\n

Steps to take if you’re behind on rent<\/h2>\n\n\n\n

Citizens Advice recommends seeking support as soon as possible if you are struggling to pay rent. Landlords may initiate eviction procedures if arrears accumulate.<\/p>\n\n\n\n

For Universal Credit claimants, landlords can request direct payments from the benefit if the tenant is at least two months behind on rent. While this can prevent eviction, it may reduce the amount a claimant receives for daily living expenses. <\/p>\n\n\n\n

According to Citizens Advice, <\/p>\n\n\n\n

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\u201cWhile the landlord is receiving these payments, you will still need to make your regular rent payments. This could mean you won\u2019t have enough to pay for your day-to-day living costs.\u201d<\/p>\n<\/blockquote>\n\n\n\n

If rent deductions from Universal Credit create financial hardship, tenants can contact the DWP Universal Credit helpline at 0800 328 5644<\/strong> to discuss alternative arrangements. However, reducing payments to landlords may result in further rent arrears, potentially leading to eviction.<\/p>\n\n\n\n

Discretionary Housing Payments (DHP)<\/h2>\n\n\n\n

Discretionary Housing Payments (DHPs<\/a>) provide additional financial support to tenants struggling with rent costs. These payments are available to those receiving either Housing Benefit or the housing component of Universal Credit. <\/p>\n\n\n\n

A DHP can help cover a shortfall in rent, assist with rent deposits, or contribute to advance rent payments for a new property. Applications should be submitted to the local council, which assesses each case individually. <\/p>\n\n\n\n

The level of support varies based on individual circumstances and council budgets. More information can be found on GOV.UK here<\/a>.<\/p>\n\n\n\n

Budgeting Loans<\/h2>\n\n\n\n

A Budgeting Loan is another option for those needing financial assistance. This interest-free loan can help cover expenses such as rent, household items, and moving costs. <\/p>\n\n\n\n

To qualify, applicants must have been receiving Income Support, Income-based Jobseeker\u2019s Allowance, Income-related Employment and Support Allowance, or Pension Credit for at least six months.<\/p>\n\n\n\n

Universal Credit<\/a> claimants are not eligible for Budgeting Loans, although those who have switched from Universal Credit to Pension Credit may still qualify. Additionally, eligibility may be affected if the applicant is already repaying a Budgeting Loan or Crisis Loan.<\/p>\n\n\n\n

Repayments are automatically deducted from benefits, and loans must generally be repaid within two years<\/strong>. The amount available depends on existing debts and savings, and applicants can borrow between \u00a3100 and \u00a3812, depending on their circumstances. Applications can be submitted through GOV.UK here<\/a>.<\/p>\n\n\n\n

Local Housing Allowance (LHA)<\/h2>\n\n\n\n

The amount of rent support a tenant can receive depends on their living situation. Local Housing Allowance (LHA) helps determine the level of assistance based on household composition and location.<\/p>\n\n\n\n

If You Live Alone<\/h3>\n\n\n\n