I've looked at Amber Rudd's recent speech which mentioned this. It looks like they are just trying to make it easier for people to request alternative payment arrangements (including payments going direct to landlords) where appropriate, ie where claimants have problems managing their money or are in rent arrears. They're not making this the default for all claims. From the speech:
"Much of the premise of UC, and the positive change it offers, is based on the fact that it mirrors the world of work. Payments are made monthly, in arrears, and all the money goes straight to claimants.
For many people this is an advantage - providing financial independence and preparation for monthly bills and salary payments.
But for others this approach does not work; managing their money month-to-month can be challenging, even impossible.
That can cause difficulties for people who are already vulnerable, and I am determined to do more to help those claimants.
There is already some flexibility in the system, thanks to the changes that we have already made.
Around 60% of Universal Credit claimants apply for advances to tide them over the initial wait for their first payment.
20% of claimants with housing costs have their rent paid directly to landlords, because a vulnerability or special need has been identified.
And for people unable to budget, there are provisions to receive payments twice, or even four times, a month. But currently only 2% of claimants have taken this option.
So although these ‘Alternative Payment Arrangements’ exist to provide people with the bespoke payments they need, they aren’t yet helping as many claimants as I believe they could.
One third of UC claimants in social rented housing have their rent paid directly to their landlord. But in the private sector, that number is only 5%.
People in the private rented sector already face a far higher risk of losing their tenancy, and I know from talking to claimants and landlords that the current system isn’t working for some of them.
So we need to make it easier for tenants in the private sector to find and keep a good home, by giving landlords greater certainty that their rent will be paid.
Therefore, I have asked the Department to build an online system for private landlords, so they can request (where necessary) for their tenant’s rent to be paid directly to them. And I will consider what else we can do, because I am determined to help keep people in their homes."
www.gov.uk/government/speeches/universal-credit-personal-welfare