Page 65 - Reforming Benefits Decision-Making

Court found that although introducing a solution for this problem might be
technically complicated, it would be manageable – some, at least, of the
necessary computer software is in place and can readily be utilised and the
DWP could, if it wanted to, access pay frequency data from Her Majesty’s
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Revenue and Customs (HMRC).
2.84 Whilst the DWP has automated many of its process and has made UC a
‘digital by default’ system, there are also elements of the benefits
process that we consider it would be helpful to claimants to automate but
which have so far not been:

a) Direct payment of rent to landlord. Under UC housing payments are now
normally paid to tenants who then must pay their landlord, rather than
being made directly to landlords as they were under Housing Benefit.
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However, some claimants struggle to budget and plan and this can leave
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them in rent arrears. Claimants can ask their work coach for the
housing element to be paid directly to their landlord, but to do so, must
be made aware that this is an option available to them. However,
claimants in Scotland are prompted to make this choice via an item in
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their “to-do list”. during their second monthly assessment cycle.

175 In order to calculate a claimant’s earnt income in each assessment period, the DWP pulls data on
claimants’ earning from HMRC’s Real Time Information (RTI) system. The RTI system collects
earnings information from employers for the calculation of PAYE tax. This paragraph is accurate at the
time of drafting, however, we are aware that Pantellerisco has been appealed by the Secretary of State
and to the Court of Appeal. The case was recently heard, but no judgement has been handed down at
the time of drafting.
176 In Northern Ireland the default position is that the housing element of UC is paid to the claimant’s
landlord each month.
177 N. Bond et al., The Benefits Assault Course (see n. 50 above) p.31; P. Hunter, Falling behind: the
impact of Universal Credit on rent arrears for council tenants in London (The Smith Institute, 2020)
178 The to-do list is an area within the UC online account where tasks are listed, for example the things
that claimants need to do to complete their claim or that are agreed as part of the claimant commitment.
179 Scottish Government, Universal Credit Scottish choices: evaluation (March 2021). In Northern
Ireland, the housing cost element of UC is paid directly to landlords as the default option for rented
properties. Claimants are able to opt out of this and have the housing cost amount paid to them if they
meet certain criteria.

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