Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to ensure that social housing tenants who receive Universal Credit are not financially affected by the 53-week rent year in the 2024-25 financial year.

In the financial year 2024-25 social housing tenants will face 52 weekly rent payment days so Universal Credit will make provision for the exact amount of their liability.

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.