Universal Credit
Pages in Universal Credit
- 1. You are here: What is Universal Credit?
- 2. Getting ready for Universal Credit
- 3. Jemma's story
1. What is Universal Credit?
Universal Credit is a scheme set up by the Department for Work and Pensions (DWP). It is a single monthly benefit payment for working age people who are on a low income or out of work. Although Universal Credit is run by DWP, not the Council, we are here to support you.
It replaces six current benefits –
- housing benefit
- child tax credit
- income support
- employment and support allowance
- working tax credit
- jobseeker’s allowance.
From the end of October 2018, more people in our borough will start being moved across to Universal Credit. This includes:
- people who make their first claim for a benefit
- people who have a change in circumstance that would traditionally have moved them from one benefit to another.
Everybody who remains on a current benefit will move over to Universal Credit in the next few years.
You can find more information about Universal Credit at the gov.uk website.
53 weeks rent year
There will be 53 Mondays in the financial year from 1 April 2024 to 31 March 2025 instead of the usual 52, with the last Monday on 31 March 2025. This is known as a 53-week year.
This happens because if you multiply the seven days in a week by 52, it adds up to 364 days - not 365, which is how many days there are in a year. And in a leap year there are only 363 days.
These extra days accumulate to add another week to the year every five or six years, meaning there are 53 weeks in the year, instead of 52.
How this affects housing rents
Housing rent is calculated weekly, starting on a Monday. So, when there are 53 Mondays in a year, there is an extra week of rent to pay.
Who it affects
This will impact all tenants, whether you pay rent weekly or monthly.
If you receive Housing Benefit this extra week will be covered by Housing Benefit.
If you pay your own rent, you will need to cover the cost of this extra week.
If you receive Universal Credit, the Department for Work and Pensions (DWP) will not cover the extra week of rent – you will need to pay it.
What you need to do
- if you pay weekly will need to pay for 53 weeks
- if you pay your rent monthly, multiply your weekly rent by 53 weeks then divide by 12 (this will be what you must pay every month)
- if you pay your rent every four weeks, multiply your weekly rent by 53 then divide by 13 payments (this will be what you must pay every four weeks)
If you are on Universal Credit
The Department for Work and Pensions (DWP) only pay up to 52 weeks of rent per year and they work out the weekly rent for those on Universal Credit by taking the total yearly amount and dividing it by 52 weeks. For example, £5,200 per year divided by 52 weeks is £100.00 per week rent.
Unfortunately, the DWP have confirmed that they will not pay for the 53rd week. This means you will need to pay for the additional week yourself.
To reduce the impact, we recommend you pay a little bit extra each week over the year. For example, if you pay £100 a week for your rent, you could divide this by 53 weeks and pay an extra £1.89 a week for 53 weeks.
If you are not happy about Universal Credit not covering the extra week
Unfortunately, there is nothing we can do as you will still be responsible and liable as the tenant to pay the extra week of rent that the Department for Work and Pensions have said Universal Credit won’t cover. If you don’t pay, you will end up in arrears.