You are viewing 1 of your 1 free articles
Housing association asks tenants for extra rent to avoid Universal Credit issue
A housing association in the North West has asked its tenants to pay extra rent, to avoid slipping into arrears next year because of a Universal Credit technicality.
New Charter Homes, which owns around 16,500 homes in Tameside and became part of Jigsaw Group last year, made the plea in social media posts last week.
It said tenants claiming Universal Credit would need to pay “a little extra each week” as a result of an extra rent week in 2019/20.
Many social landlords charge rent every Monday, so there will be 53 lots of rent due in 2019/20 because there are 53 Mondays between 1 April 2019 and 31 March 2020.
However, the Universal Credit system will only account for 52 rent weeks as normal, leading to housing associations warning that tenants using the benefit to pay their rent could lose out.
READ MORE
On Facebook, New Charter said: “2019/2020 is a 53 week rent year – this means there are 53 Mondays in the financial year.
“If you are in receipt of Housing Benefit then this will be covered. If you are in receipt of Universal Credit, then Universal Credit WILL NOT cover week 53.
“We know this is not ideal and we have raised it with our local politicians. Until the rules are changed, the best way to avoid falling into arrears is to pay a little extra each week [to] ensure that the rent is covered.”
Some commenters on the post questioned how they would afford to pay the extra rent.
New Charter also posted similar information on Twitter:
If you are in receipt of housing benefit then this will be covered. If you are in receipt of #UniversalCredit, then Universal Credit WILL NOT cover week 53. 2/4
— New Charter Homes (@NewCharterHomes)If you are in receipt of housing benefit then this will be covered. If you are in receipt of #UniversalCredit, then Universal Credit WILL NOT cover week 53. 2/4
— New Charter Homes (@NewCharterHomes) March 7, 2019
Please note that existing non-collection weeks will still apply. If you’re worried or would like more information, please don’t hesitate to contact our MoneyWise team. 4/4
— New Charter Homes (@NewCharterHomes)Please note that existing non-collection weeks will still apply. If you're worried or would like more information, please don't hesitate to contact our MoneyWise team. 4/4
— New Charter Homes (@NewCharterHomes) March 7, 2019
The Department for Work and Pensions announced last month it is considering amending the way it calculates rent allowances for social tenants claiming Universal Credit, having previously denied there was a problem.
It currently maintains that five days of the extra week’s rent paid by Universal Credit claimants in 2019/20 will fall in 2020/21, essentially representing an advance for the following month when four rent payments are due and the tenant will receive the same award as any other month, balancing out any underpayment.
Mike Murphy, head of income and leasehold management at New Charter, said: “A number of registered providers who charge rent weekly are affected by this arrangement.
“Jigsaw Group has raised the issue with our local politicians and the Department for Work and Pensions says it is currently considering whether the Universal Credit rules should be amended to include payment for the 53rd week rent charge.
“We have informed our tenants both in their January rent statements and via social media to ensure they are fully aware of the situation.
“Whilst recognising that tenants on limited incomes may find this difficult, we encourage all our tenants to pay a little extra each week in order to have a buffer on their account should they encounter difficulties in paying their rent.
“Jigsaw Group also offers a money advice service to assist tenants in dealing with benefit entitlements, debt problems, and also provide advice on other matters concerning finances.”
