Good afternoon

How and when can a tenant report a change of circumstances to DWP?

That’s a question often asked by landlords’ staff, particularly when there’s a rental charge change or a tenancy is being ended. The safest advice is straightforward: a tenant should report a change through their Universal Credit account as soon as it happens. After doing so, they should also check their next statement to ensure it’s been correctly applied and, if not, notify DWP again.

What should tenants do?

  1. Use the “Report a change” function in the tenant’s online Universal Credit account. If the tenant cannot use the online service, they can contact the Universal Credit helpline.
  2. Relevant changes include rent going up or down, moving address, a tenancy ending, changes in household composition and other personal or financial changes. See UK guidance on reporting a change of circumstances.
  3. Give the correct effective date and provide any evidence requested, such as a rent increase notice, tenancy agreement or confirmation of occupation from the landlord.
  4. Check the next Universal Credit statement. If the housing costs element or effective date appears wrong, ask DWP to explain the decision and request a Mandatory Reconsideration if necessary.

The Benefit Assessment Period (BAP) and “whole month rule”.

Universal Credit is assessed in monthly assessment periods. A change can affect the amount payable for the whole assessment period, not only the period after it is reported. For housing costs, DWP’s current landlord guidance explains that support is normally based on the tenant’s circumstances on the last day of the assessment period. If the tenant permanently vacates the property before the last day of the benefit assessment period (BAP), they will usually receive no housing costs element for that whole assessment period.

Can a future change be reported in advance?

A tenant may tell DWP about an expected change in advance, for example by adding a journal message and supplying evidence. However, DWP’s reporting guidance says changes must be reported as soon as they happen, using the online “Report a change” service, which does not accept a prospective date. The tenant should therefore report the change using the system when it occurs, even if DWP has already been told about it. The legal framework for revising or superseding an existing award is in the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) Regulations 2013.

What happens if the change is reported late

Where a change potentially increases entitlement, a late notification can prevent the increase taking effect from the BAP in which it occurs, unless DWP accepts that the timescale for notification should be extended due to mitigating factors. Where that applies, the tenant should report the change immediately, explain the reason for delay, and ask DWP to apply the change from the correct date. Where a change reduces entitlement, and the reporting is delayed, DWP will apply the change from the BAP when the change occurred. This will invariably create an overpayment.

If the tenant believes the overpayment has been wrongly calculated, they should request a Mandatory Reconsideration, ideally within one month of the decision date.

Ending a tenancy

Mike’s assessment period runs from 15th of August to the 14th of September. If he terminates his tenancy, after giving notice, with effect from 11th September, DWP will not pay any housing costs for the whole BAP. Whereas if his tenancy ended on 15th September, he would receive his housing costs in full for the period 15th August to 14th September.

Moving to new property

In the first example, if Mike moved into another rented property on the 11th of September and was resident there on the 14th of September (last day of BAP), DWP would pay him housing costs for the new address for the whole of his BAP (15th August-14th September) even though he only occupied the new property for 4 days in the period.

Each change needs to be reported using the drop-down box on his UC account.

Landlords receiving direct payments

Whereas claimants are primarily responsible for reporting changes to their Universal Credit award, where landlords receive managed payments, they are also obliged to report changes promptly to DWP. For example, if a landlord knows that a direct payment may no longer be justified—for example, because the tenancy or rent liability has ended—this must be reported through the landlord portal (social landlords) and by email to a Practice Manager or other member of DWP’s staff for private landlords. Failure to do so will cause an overpayment which could be recoverable from the landlord.  So, keep a dated record of the information supplied and any response. See DWP’s updated Universal Credit and rented housing guide for landlords.

Universal Credit overpayments are recoverable, including those caused by official error. Where housing costs were paid directly to a landlord, DWP can consider whether the landlord caused or contributed to the overpayment and may seek recovery from the landlord in an appropriate case; receipt of the payment alone does not mean that recovery will automatically be directed to the landlord. If DWP issues an overpayment or recoverability decision, obtain advice promptly, request the decision and calculation in writing, and seek a Mandatory Reconsideration within the usual one-month period if the decision is disputed. See also the current DWP Benefit overpayment recovery guide.

Key message for staff

Encourage tenants to report changes as soon as they happen, retain proof, and check the resulting award. If a future date cannot be entered online, record the anticipated change in the journal and report it formally when it takes effect. Where the effective date or housing costs element amount appears wrong, ask for an explanation and request a Mandatory Reconsideration promptly.

For advice on Housing Benefit or Universal Credit issues, email bill@ucadvice.co.uk or telephone 07733 080 389. Remember, this bulletin provides general information only. Individual entitlement depends on the facts and the law in force at the relevant time.

Regards

Bill Irvine

UC Advice & Advocacy Ltd