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Universal Credit Housing Element and 53 weeks in year
Hi
Had a client who recently moved to UC through Managed Migration. Prior to this housing costs were being paid in full by HB. On moving to UC there has been a shortfall of £11.98 for rent in UC Housing Element.
We contacted his local authority ( also his landlord) who stated the following
As 2024/25 has 53 weeks, the weekly rent of £135.30 works out to be £597.57 per month. However the Department for Work and Pensions will not take the 53 weeks into account when calculating Universal Credit, which causes the discrepancy, as they determine the monthly rent to be £586.30.
Has anyone else come across this- it seems so unfair as to be possibly unlawful?
1. It’s already been to the courts
2. There is no such thing as a 53 week year.
3. Sausage rolls.
Thanks
It reply from l/a that mentioned 53 week years and yes I did get confused. Perhaps even more bizarrely when client called UC they said it was because this is a leap year!
So, in essence, this has been to court and their is nothing client can do about shortfall ( except apply for DHP)
Thanks
It isn’t really a ‘shortfall’ as such - I doubt he can get a DHP for it.
The rent will fall due every Monday and it is £135.30 per week. That is what your client will need to pay.
The UC HCE is awarded at £586.30 per month. That is because the law requires the use of the (52*Weekly rent)/12 formula.
If your client just hands over the HCE when it is received, or relies on an APA, then he will fall into a week’s rent arrears every 5 years or so because weeks do not go precisely into months.
The LA are suggesting that he ought to get ahead of the issue by paying an extra £11.27 each month in 2024/25 to make up for the lost week.
There will be either 52 or 53 Mondays in any arbitrary year long period. Presumably your LA works on financial rather than calendar years which is where they have got the idea that 2024/25 specifically is a 53 week year.
As 2024/25 has 53 weeks,
It doesn’t. April 24 to March 25 has 52 weeks and one day. It might have 53 Mondays, and therefore LA rent due weeks, but that’s different.
The tenant loses one days rent.
we wouldn’t do a dhp for this - we cant award a dhp to compensate for state benefits being paid in arrears when the rent is due in advance, not can we award a dhp to compensate for a discrepancy in the way the landlords and DWP calculate the rent figure.
UC is paid monthly - any rent increase takes effect from the start of the assessment period - meaning most customers will be the April 25 increase paid from some point in MArch…. eabning they’ll gain on the deal….
I love that we all know what “sausage rolls” means.
As 2024/25 has 53 weeks,
It doesn’t. April 24 to March 25 has 52 weeks and one day. It might have 53 Mondays, and therefore LA rent due weeks, but that’s different.
The tenant loses one days rent.
Yes, and they had already lost two days rent in the 23/24 rent year (which included a 29 February). It is unnecessarily inaccurate, and although I love explaining it to tenants, it is a bit annoying.
I believe (based on experience) that most weekly social housing has rent years starting on the first Monday of April.
What has a lot more practical impact is that on UC, some APs will have 5 rent days and some 4. Add that to the problems caused for those on weekly pay by the same pattern of pay days and it becomes horribly difficult to budget. That’s why we profuced our Periods Reckoner that works out the pattern for the next 2 years, including bank holidays.