Council warns of benefit change impact with landlord advice
Arun District Council is letting residents and landlords know about important changes to benefits that could cause financial difficulties for some families.
The government recently removed the 'two‑child limit', which means families can now receive extra Universal Credit for more than two children. This change could increase a family's entitlement by about £3,500 a year for each extra child.
However, many families will not receive this extra money because the Benefit Cap is still in place. This means there is a limit on how much a household can claim in total.
Families with three or more children, or those living in high‑rent areas, may hit this limit straight away.
Experts warn that from April 2026, more families will be affected by the Benefit Cap, and the Department for Work and Pensions (DWP) may start stopping direct rent payments (managed payments to landlords). Instead, the DWP may pay the money straight to the tenant to ensure they have enough for daily living.
This could make it harder for landlords to receive rent on time, especially if the tenant has struggled with rent payments before.
Because of this, Arun District Council is encouraging landlords to understand their rights and act where needed.
Advice for landlords
Landlords who are worried about losing direct rent payments should:
- ask the DWP to make a 'managed payment to landlord' (MPTL), meaning some of the housing payment still goes directly to them. The DWP has the power to do this to help protect a tenant's home
- send any evidence of rent arrears or other concerns to the DWP using the 'Apply for Direct Payment' process. Keep clear records of all communication
The government's decision to remove the two‑child limit should help families, but because the Benefit Cap is still in place, many will not see the extra money they are expecting. This could leave some households struggling even more and puts them at risk of falling behind with rent.
We want to support families and landlords so that people can stay in their homes. We encourage landlords to speak to the DWP if direct payments are removed and to ask for part‑payments where needed. Arun District Council will continue working with our communities to help prevent rent arrears and homelessness.
More information
Details about the Benefit Cap can be found on the government website:
Benefit cap: Benefit cap amounts - GOV.UK
Further advice can be found here: Conflict between, removal of the 2-child limit, the Benefits Cap & Direct Payments! - Universal Credit Advice