APA managed payments
If a claimant moves home and delays notifying the DWP they may find that there is an overpayment of Universal Credit.
Any amount of Universal Credit payable to the landlord for the period of the overpayment will be recoverable from the claimant and the landlord - even where the landlord was totally unaware that the tenant had moved.
As this is a discretionary decision ie who the DWP decide to recover the overpayment from, the landlord has the right to ask the DWP to reconsider the decision but does not have the right to take the decision through the normal appeal procedure and to a Tribunal.
However, if the overpayment is the result of the landlord failing to notify the DWP that a claimant has moved then the DWP may decide that the landlord has caused the overpayment and then the overpayment will be recoverable from the landlord instead of the claimant - in this case, as this is not a discretionary decision the landlord will have the right of appeal (if they win we then revert back to the DWP having the discretion to recover from the landlord and so a win does not mean that the DWP cannot recover the overpayment from the landlord but that the landlord did not cause the overpayment).
The claimant will not be entitled to any help with the rent on the property they have moved out of for the whole of the Monthly Assessment Period (MAP) in which they move and any subsequent MAPs. Unlike in Housing Benefit, a claimant is not able to get Universal Credit for any notice period.
Regulations state that where an overpayment of housing costs has occurred because the claimant has moved from their old home "A” to their new home "B” and housing costs are payable to the same person in respect of both properties, and they are overpaid the housing element for A because they are no longer occupying (or treated as occupying) it and they are now entitled to a housing element for their new home B, the appropriate overpaid amount for A may be deducted from the housing costs for B. Where there is still a resulting overpayment - this overpayment can be recovered from the landlord if the landlord was receiving any payments of UC for the tenant is respect of housing costs ie an APA managed payment.
Third Party Deductions
Third party deductions for rent arrears can only be made in respect of the property the claimant occupies. Therefore third party deductions should stop and should not be made for the monthly assessment period in which the claimant moved out of the property. If third party deductions continue for this and subsequent months this overpayment will be recoverable from the landlord.