If you claim Universal Credit this will still be paid over the usual 52 weeks, and not 53.
Meaning a shortfall of one week.
This is because when the Department for Work and Pensions (DWP) works out your monthly rent, it multiplies a week’s rent by 52 (weeks of the year) times by 7 (days a week) which works out at 364. It then divides this by 12 (months).
This would be fine if there were exactly 52 weeks rent in a year – but there aren’t. There’s always an extra day in the year, or two in a leap year, which is the case in 2024.
If you don’t pay that extra day yourself, this then can ‘catch up’ with you once every few years so whenever there are 53 Mondays in a financial year. Unfortunately, 2024/5 is one of those years.
The DWP won’t pay any extra Universal Credit to cover this. The only way to avoid falling behind is by paying a little extra each week to ensure your rent is covered.
It won’t make a huge difference to your normal payments, so don’t worry. But it’s a good idea to work out your payments now. If you fall behind later in the year it will be harder to catch up.
What if I pay by monthly standing order?
You need to make an adjustment to your payments. To calculate how much rent you should be paying each month, multiply your weekly rent amount by 51 as we have two rent free weeks and then divide it by 12.
For example, if your rent is £100 per week you would use the following calculation: £100 x 51 ÷ 12 = 425
Once you’ve calculated your monthly payments, contact your bank to update your standing order.
What about rent free weeks?
These will still apply, but this year you will have one more weekly rent charge than usual. So, if you have two non-charging weeks and you are normally charged rent 50 times each year, this year you will have 51 rent-charging weeks.
What if I pay weekly?
There is no change. You will pay your new weekly rent from 8 April 2024 in advance every Monday.
What if I claim Housing Benefit?
You don’t need to do anything, this will be covered.
Where do I go if I need help with this?
If you would like any support with budgeting or other money advice, please contact our Money Matters Team here
