53-week year – what it means for rent payments
08 February 2024
Did you know that the next financial year commencing on 1 April 2024 is a 53-week year. Within a year there is usually only 52 weeks, but this is not the case in this financial year, as there are 53 Mondays!
When calculating Universal Credit (UC), the Department for Work and Pensions (DWP) work out monthly rent by multiplying a week’s rent by 50- or 52-weeks dependant on your tenancy and dividing by 12. This is the case even when there is an extra week in the year.
This means that your monthly UC payments will not cover the monthly rent in 2024. So, you will need to work out the shortfall and pay this.
WEEK 50 tenancy: Rent £99.01 per week X 51 weeks charges divided by 12 months = Monthly payment due £420.80
WEEK tenancy: Rent £99.01 per week X 53 weeks charges divided by 12 months = Monthly payment due £437.29
- 53-week year rent calculation: weekly rent £90 × 53 ÷ 12 = £397.50
- 52-week year Universal Credit calculation: weekly rent £90 × 52 ÷ 12 = £390.00
If you do not understand and are unsure what to do, please get in touch with our Income Services Team, on 0800 678 1894 or email info@torus.co.uk, and our friendly team will help, find out about accessing support here.
FAQs:
Why does this happen? This happens every five or six years, because there are 365 days in a year or 366 in a leap year, which breaks down to 52 weeks in a year plus one day, or in a leap year 52 weeks plus two days. These extra days accumulate to add an extra week to the year.
What does it mean for me? If you pay your rent weekly, there will be an extra week of rent to pay. If you pay monthly, you need to ensure this extra week is covered when you make a rent payment.
Who does it affect? If you receive Universal Credit, the Department for Work and Pensions will NOT cover the extra week of rent – you will need to pay it.
However, if you are on Housing Benefits (HB, legacy benefits) you will not be impacted by this, as HB will cover this as they pay every week that it is charged.
What do I need to do if I am on Universal Credit? Unfortunately, they have confirmed that they won’t pay for the 53rd week. This means you will need to pay for the additional week yourself.
What do I need to do if I pay by Direct Debit? If you pay by Direct Debit you don’t need to do anything. We will calculate this for you and automatically adjust your payments accordingly.
What if I pay by monthly standing order? If you pay by standing order, you need to make an adjustment to your monthly payments yourself. To calculate how much rent, you should be paying each month, multiply your weekly rent amount by 51 or 53 dependant on your tenancy and then divide it by 12.
What happens to my non-collectable (rent-free) weeks? Non-collectable weeks only apply to some Legacy Torus tenants (Warrington and St Helens).
You will still have two non-collectable weeks but there will be an additional week’s rent to pay. Your rent will be charged for 51 weeks.
Find out more about non-collectable weeks here.
What can I do if I am not happy about Universal Credit not covering the 53rd 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 Universal Credit won’t cover.