Good morning

The Issue being addressed

This case concerns a private landlord who died while receiving a Managed Payment to Landlord (MPTL) and third-party rent arrears deductions from a tenant’s Universal Credit. The tenant had already accrued substantial arrears, which was the reason payments had been redirected away from the tenant in the first place. Following the landlord’s death, the executor and sole beneficiary asked DWP to continue the existing arrangement by redirecting payments to the estate’s nominated bank account.

What went wrong?

DWP’s response confused a change in landlord creditor details with the creation of a new tenancy or a new housing costs liability. That distinction matters as a landlord’s death does not end the tenancy. In England, where the property exists, the tenancy continues under the same terms, and the personal representatives administer the landlord’s estate while probate is being dealt with. The tenant remains liable for rent, and the estate is entitled to receive it. Requiring a new tenancy agreement in the executor or beneficiary’s personal name is therefore legally misconceived, particularly where probate has not yet been granted.

It also undermines the purpose of an Alternative Payment Arrangement. MPTLs exist to protect claimants and tenancies where direct payment to the tenant would create a risk of financial harm, non-payment of rent or eviction. In this case, the original arrears-based DP trigger had not disappeared. The tenant still occupied the same property, under the same rent liability, and the arrears remained outstanding. The only relevant change was the death of the landlord and the need to redirect payments to the estate.

How these cases should be handled

Where a landlord dies, and an MPTL is already in place, DWP should first ask whether the underlying tenancy and rent liability have changed. If the tenant remains in occupation and the rent remains due under the same agreement, there is no need for the claimant to make a fresh housing costs declaration or produce a new tenancy agreement. The correct approach is to maintain the existing APA/MPTL and update the payee or creditor record, so payment is made to the estate, normally care of the executor, administrator, solicitor or other authorised representative.

DWP may reasonably ask for evidence of authority, such as a death certificate, will, grant of probate, solicitor’s letter, executor’s written authority or estate bank details. But practical delays in obtaining probate should not be treated as a reason to cancel the MPTL and revert payment to a tenant with known arrears.

Relevant Legislation

Regulation 58 of the Universal Credit (Claims and Payments) Regulations 2013 gives the Secretary of State discretion to arrange payment to someone other than the claimant. The case, therefore, required the continuation of an existing protective arrangement, not cancellation and re-verification of the whole tenancy.

Practical points for members

  • Describe the request as a creditor/payee update for the estate, not a change of tenancy or new landlord application.
  • Provide whatever authority is available, but challenge any demand for a new tenancy agreement where probate has not been completed.
  • Ask DWP to maintain or reinstate the MPTL and third-party deductions pending completion of estate administration.
  • Escalate quickly if housing costs are paid to the tenant despite known arrears, as delay can increase arrears and eviction risk.

Current position

Despite the issue being capable of straightforward resolution, the matter has now been drifting for around three months. DWP appears to have suspended housing costs, pending a decision. Meanwhile, the Service leader has promised an early resolution.

Bill Irvine

UC Advice & Advocacy Ltd

Tel: 07733 080 389