Rented Housing: Universal Credit
The question
To ask the Secretary of State for Work and Pensions, if he will make an assessment of the impact of 53 week rent-years on rent payment schedules for Universal Credit claimants; and if he will make an assessment of the potential merits of ensuring that payments adequately match claimants’ renting costs.
Answered by Sir Stephen Timms
Universal Credit always converts weekly amounts to monthly sums using 52 weeks. The legitimacy of this approach was confirmed by the High Court having been tested via a judicial review.
Every five or six years, weekly tenants may have a rent charging year containing 53 charging days. This will not apply in all cases and some claimants will not have a 53-week charging year during the life of their benefit claim.
Most people in work are paid monthly, as is Universal Credit, and they budget for their outgoings on a monthly basis. Weekly rental liabilities do not map directly onto a monthly cycle and this creates budgeting complexities for tenants. They will be required to make only four payments of rent in some months but five payments in others even though their monthly income remains constant. This problem exists in all rent charging years for those with a weekly liability, not just those with 53 Mondays.
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