The DWP calculates housing cost payments based on a 52-week year and this remains the same even in a 53-week year – this means some Universal Credit claimants fall short by a weeks rent
Universal Credit claimants are being warned that they may lose out on a week’s rent this year due to a glitch in the benefits system.
The Department for Work and Pensions (DWP) calculates housing cost payments based on a 52-week year and this remains the same even in a 53-week year. In the next financial year, there will be 53 Mondays until March 31 2025, this means that some Universal Credit claimants will need to cover the rent payments for the 53rd week.
The issue affects council and social housing tenants who pay their rent weekly. The DWP has said the High Court confirmed its calculation for weekly rent payments and there were “no plans” to change the system. Universal Credit is paid monthly, while social rents are often billed weekly. This means the shortfall could catch many out.
The Social Housing Action Campaign (SHAC) and the National Housing Federation (NHF) have called on housing associations to drop the 53rd weekly payment for tenants and adjust the way Universal Credit payments are made. On its website, the NHF says the problem arises every five to six years and for many claimants, they’re short on rent by around £100.
SHAC highlighted that the rent increases and the cost of living crisis had already burdened households enough and the 53-week rent year “could not have fallen at a worse time”. The spokesperson added: “All of these trends have combined to put an unbearable strain on household finances, and are causing huge distress and suffering.”
Laura Magezi, policy leader at the National Housing Federation, said the change in how Universal Credit is paid would “protect the thousands of people and families affected from being pushed further into financial hardship”.
A DWP spokesperson said: “No calendar year has 53 weeks, and the calculation for payments we use for claimants paying their rent weekly has been confirmed by the High Court. Universal Credit is designed to mirror the world of work, with calendar monthly calculations and payments made to reflect how most people receive their wages. This helps claimants take responsibility for budgeting their money – helping them prepare for a return to work – and reflects the fact that many people on UC are already in work and receiving a monthly wage.”
