Rented Housing

(asked on 14th March 2024) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he has had recent discussions with (a) housing associations and (b) renter groups on the potential impact of a 53 week rent year in 2024-25.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 19th March 2024

There has been no recent conversations with housing associations or renter groups regarding the formula to convert weekly rental liabilities to calendar monthly values in Universal Credit.

Universal Credit always converts weekly amounts to monthly sums using 52 weeks. This may lead to a slight advantage to the claimant when converting weekly incomes and to a slight disadvantage when dealing with outgoings. The system is used because it is simple to operate and understand. The department has considered alternative options for those with weekly tenancies, but each have their own limitations and disadvantages for claimants and so there are no plans to change.

The legitimacy of this calculation formula in Universal Credit was confirmed by the High Court in 2020 who found it to be neither irrational or discriminatory.

Discretionary Housing Payments can be paid to those entitled to Housing Benefit or the housing element of Universal Credit who face a shortfall in meeting their housing costs. Since 2011, the government has provided nearly £1.7 billion in Discretionary Housing Payments to local authorities.

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