Good morning

We are currently assisting a highly vulnerable tenant, whom we will call Mr A, in what should have been a relatively straightforward Universal Credit dispute. Unfortunately, the case has become a stark example of the difficulties claimants, landlords and advisers can encounter when a clear administrative error is left unresolved for months.

The Background

Mr A migrated from Housing Benefit to Universal Credit in December 2024. At the point of migration, his contractual rent was unchanged. His private landlord had previously received Housing Benefit based on a weekly rental liability. As is often the case under Housing Benefit administration, payments had been expressed and paid on a four-weekly basis.

When Universal Credit assessed Mr A’s Housing Costs Element (HCE), it appears to have adopted the former four-weekly figure rather than converting the weekly rent into the calendar-monthly amount required for Universal Credit purposes.

As a result, Mr A’s HCE was under-assessed from the outset. The position is now accepted by DWP going forward. However, it has so far refused to revise the award back to the start of the Universal Credit claim, even though:

  • The rent liability never changed.
  • The evidence provided at the outset appears to have been correct.
  • The incorrect figure originated during the assessment process.
  • The award has subsequently been corrected prospectively.

In our view, these facts strongly support the argument that the original decision resulted from official error rather than from any failure by the claimant to report a change. If accepted, as it should be, the Decision Maker can backdate to December 2024.

Impact on the tenant & landlord

Mr A experiences multiple and severe health conditions, including serious mental health difficulties that significantly affect his ability to manage his affairs. The consequences of the under-assessed Housing Costs Element have been profound. While the award remained incorrect, approximately £8,000 of housing support was paid directly to Mr A. Due to his vulnerabilities, those funds were not used to meet his rent liability, resulting in substantial arrears. Importantly, his landlord has taken an exceptionally measured approach throughout. Despite the growing arrears, the landlord has continued to work constructively towards a solution.

The Mandatory Reconsideration Delay

A Mandatory Reconsideration (MR) request was submitted approximately four months ago.

To date:

  • No substantive response has been received.
  • No MR Notice has been issued.
  • No clear timescale for resolution has been provided.

The case has been raised repeatedly through DWP escalation channels. Correspondence has been sent to: A Partnership Manager; a Service Leader; and an Area Director. Yet meaningful engagement has not been forthcoming.

As many advisers and landlords will recognise, the absence of an MR Notice creates an additional barrier because tribunal appeal rights cannot ordinarily be exercised until DWP has completed the reconsideration process.

Escalation to Director General

Given the continued delay and the apparent lack of progress, the matter has now been escalated to DWP’s newly appointed Director General. This escalation is not being sought because the legal issues are particularly complex. On the contrary, the dispute is relatively straightforward:

  1. The rent liability remained unchanged.
  2. The Housing Costs Element was calculated incorrectly.
  3. The award has since been corrected going forward.
  4. A vulnerable claimant continues to suffer the consequences.
  5. A landlord remains out of pocket despite acting responsibly throughout.

Our View

In our experience, the overwhelming majority of DWP staff work hard to assist claimants and advisers. However, cases such as this raise legitimate questions about how clear administrative errors are identified, reviewed and corrected when vulnerable claimants are involved.

At the time of writing, we continue to await a response from DWP and hope that senior intervention will finally bring this matter to a conclusion for both Mr A and his Landlord.

We will provide a further update to members once a formal decision has been issued.

Regards

Bill Irvine

UC Advice & Advocacy Ltd

Tel: 07733 080 389