Good morning

The April 2025 Benefits Uprating order will impact your tenants’ personal benefit entitlement and housing costs. The rises, while limited in scope, will be welcomed, as many families have been struggling to make ends meet.

Those of pensionable age will experience a rise of 4.1% to their state pension. Whereas “working age” tenants, receiving Universal Credit or legacy benefits, like Income Support, JSA, etc., will see an increase of a mere 1.7%. For more details, check the link

A question I’m often asked is – “When can tenants claiming Universal Credit expect to receive the increased awards of UC personal allowances and housing costs?”

This is not straightforward, as UC is paid calendar monthly, based on each tenant’s Benefit Assessment Period (BAP). However, I’ve created an example below to illustrate how this should work.

  • Tenant A claims UC and has a benefit assessment period (BAP) running from 15th March to 14th April, normally paid 7 days later, on 21st
  • The Normal rule is, when a change in circumstances occurs (e.g. child is born, starts new job, experiences a higher salary, moves address, adds a partner) the change takes effect from the first day – 15th March, so any increase/reduction in his/her award would apply from 15th March -14th April; paid 7 days later 21st April.
  • However, for the annual benefits uprating order, the increase to the tenant’s personal allowance, child additions, etc., takes effect on the first BAP, starting on or after 7th April. So, if the tenant’s BAP starts on the 7th the new award will cover 7th April – 6th May, with payment made on the 13th of May. Whereas, a BAP starting on the 10th of April would receive the increase on the 16th.
  • Claimants with BAPS starting on 1st– 7th April will need to wait until the start of their next BAP before they realise the higher award. So, using the 1st as an example, that claimant’s higher award will be based on their BAP – 1st May – 30th May, paid on 6th June!

In contrast, annual rent & service charge increases, applied by Social Landlords, applying from April, should take effect, using the general rule, i.e., effective from the 1st date of the tenant’s BAP. Tenants should also be able to report the change via their UC journal, during the period of the BAP, not after the 1st, as DWP suggests.

But, as we all know, DWP adopts a different approach for SRS landlords with access to its “housing costs” portal. This insists on tenants completing a “to-do” – ‘Confirm your housing costs’ – once it appears in their journal.

Plus, SRS landlords are expected to validate each tenant’s notification. Failure to comply with that process can often lead to the “housing costs element” not being uprated, creating rent arrears. More details on what’s expected from SRS tenant and landlords can be found here

Because the LHA changes, are subject to the Rent Officer’s order, the example relating to Tenant A above, applies to both his personal and “housing costs element”. So, where private tenants have a BAP starting, between the 1st to 7th, they will have to wait until 6th-13th June before they receive their first payment at the higher rates. I have recommended to my private, voluntary, and charitable members, to ensure their tenants report the change in circumstances, using the UC journal’s “change in circumstances” facility, any time after 1st April 2024.

I hope all this makes sense to you. If it doesn’t, drop me an email or phone me on 07733 080 389 and I’ll explain.

Regards

Bill Irvine

UC Advice & Advocacy Ltd

www.ucadvice.co.uk