Expert Comments: 53-Week Rent Year & Cost of Living Crisis

The financial year of 2024 features the anomaly of having 53 Mondays, as opposed to the usual 52, resulting in an extra week. While many might believe that this has little bearing on day-to-day life, numerous social tenants who pay their rent weekly will experience a significant strain on their finances as Universal Credit – calculated on a 52-week year – will not account for this additional cost. This is leaving countless tenants across the UK struggling to come up with an extra weeks’ rent, on-top of the financial difficulties they are already facing due to the ongoing cost of living crisis.  

The Department for Work and Pensions (DWP) calculates Universal Credit by multiplying the weekly rent by 52 and dividing it by 12 to determine monthly payments. However, with the 53rd week not included in this calculation, the DWP has condescendingly told tenants to use the opportunity to “take responsibility for budgeting their money,” providing little other information on the topic. This discrepancy has led to considerable confusion and concern amongst the tenants aware of the situation, exacerbating their financial pressures. The National Housing Federation and various advocacy groups, including the Social Housing Action Campaign, have called for urgent changes to how Universal Credit payments are made to prevent tenants from being pushed further into hardship. Local councils have also had difficulty extracting more detail about the issue, leading to inconsistent advice across neighbouring borough. For example, Guildford Council has warned their tenants of the upcoming financial difficulty, whereas tenants of Tandridge were assured that their payments would automatically adjust to account for the extra week, and those within other councils left unaware of the potential future hardship. 

Our Law Centres has seen, firsthand, the impact of this issue on our clients and community. With our cost-of-living team, we have been able to support many tenants affected by this discrepancy, assisting them through the required processes so that they may be able to pre-emptively avoid the financial strain down the line.

However, due to a lack of funding, and the lack of information around the topic, our team is not able to provide advice to everyone who needs it, and are vocally frustrated by the DWP’s lack of care for those who should be benefitting from their support. Our expert cost-of-living advisor further described the frustration clients may face due to these circumstances:

“This anomaly could push people who are already in a deficit, into further financial strain, which in a worst-case scenario through rent arrears. Our community need to be made aware of the situation, and the DWP should take the responsibility to inform clients of the situation, so that they are able to be proactive around the issue. Councils are aware but are leaving it up to the tenants to figure it out on their own. Asking people who have already cut down on everything possible, to cut down even further, impacting their ability to pay for basic necessities, such as food, gas, and electrics. This may lead to clients having to rely on foodbanks. Because of the lack of awareness around the problem, many folks may not even be aware of why they have suddenly fallen into rent arrears and find themselves at a significant loss.” 

Our solicitor and housing expert also added:

“The problem with the payment of universal housing costs within a 53 week year could be easily addressed by landlords charging rent monthly or by the government simply amending the way housing costs are assessed. It is generally accepted that policies such as the bedroom tax and benefit cap  have already push many into poverty. The issue with 53 week rental periods is yet another example of the government taking money away from those least able to afford it.”

The year 2024 will pose significant challenges for those receiving Universal Credit or struggling with the cost of living and housing crisis. However, we are here to support anyone who seeks our help.

If you would like to contribute to addressing the issues related to the 53-week rent year, please consider making a donation. Additionally, if you, or anyone you know could benefit from our services, you can complete our cost-of-living advice form to access the assistance you need.