In response to the rising cost of living, the Government has announced a change to how social housing rents will be calculated from April 2023.

All Torus tenants pay rent, regardless of whether they pay the full charge themselves, or if they receive Universal Credit or Housing Benefit. Torus is committed to keeping rents affordable, while maintaining services and have outlined the change, how this will affect you and support available.

What has the Government said?

The Government has confirmed that there will be a cap on rent increases for social housing tenants across the country, meaning that rents will increase by up to 7% from 3 April 2023. The cap is designed to keep rent levels down for tenants, considering the current high levels of price inflation and the cost-of-living crisis.

The government also announced that means-tested benefits, including Universal Credit, will rise by 10.1% from April, in line with inflation. This means that tenants who receive these benefits will get more to help meet their household expenses, including their rent.

What will this mean for tenants?

In February, every Torus customer will receive a letter from Torus outlining what the new rent will be from April 2023. This letter will provide all individual information and explain what customers need to do if they are in receipt of benefits.

We are working to keep rents as affordable as possible for tenants, so, from April 2023, following careful planning and in line with the Government’s rent cap, we are proposing to increase the rents we charge by 7%.

This will also apply to our Shared Owner, Supported Living and Rent to Buy customers too, as even though the Government did not cap the rent for these customers at 7% because we are deeply aware of the financial pressures people are currently facing, we took the decision to cap the rent increase for those customers at 7% matching the Government’s social rent cap.

Without the 7% cap, in line with Government guidelines, rent for social housing tenants would have increased by Consumer Price Index plus 1%, (equivalent to 11.1%) and most shared owners rents would have increased by RPI + 0.5% (equivalent to 13.1%). We understand that 7% is still a significant increase for self-payers, and it was an extremely challenging choice to make but enables us to maintain our services.

Key dates:

• Rent and service charge change letters will be posted in mid-February 2023
• For monthly rent and service charges, the changes will apply from 1 April 2023
• For weekly rent and service charges, the changes will apply from 3 April 2023

Important information for anyone claiming benefits

It is important that those customers in receipt of benefits keep their rent change 2023/24 letter safe as they will need their new rent figure to update their claim.

Universal Credit (UC)

Customers in receipt of UC, will need their new rent figures to update their UC Journal. Torus are not able to update UC about the changes to customers rent, so it is important that customers let them know to avoid being under or overpaid.

This should not be done until after the rent change date in April 2023, but it must be done before the end of the “Monthly Assessment Period” in which the rent change occurred.

UC will only backdate a change for one month. Failure to update the UC journal with new housing costs will mean that the assessment does not include the full amount due to cover the rent. Which could lead to the customer having to pay any shortfall and rent arrears on their account.

Housing Benefit (HB)

Anyone with a new tenancy from 1 December 2022, who have made a claim or are in receipt of HB will need to contact their local authority to inform them of their new charges from April 2023. They may ask to see a copy of the rent change letter, so please keep it safe.

What will the increase be used to pay for?

The yearly rent increase ensures that Torus can continue to deliver and improve our services.

Unfortunately, all our services, including materials and maintenance costs, have been affected by a 12.6% inflation increase (RPI figure as of September 2022), but we are still committed to investing in maintaining and improving homes, supporting communities and delivering the wider services our customers need.

Through Torus Foundation, we can provide increasing support to families with increased costs, such as energy. We have doubled the size of our Energy Advice Team, investing more in welfare benefit and debt advice, supporting the creation of new Food Pantries across our heartlands which provide healthy food at affordable prices, whilst supporting customers to find work or access training to develop their career.

We will continue, year-on-year, to significantly increase investment in repairs, maintenance and improving homes, with a planned budget of £122million for 2023/24, despite the significant increase in volumes and costs for materials and labour.

Further support will continue to be provided by ourselves for services to support the most vulnerable in our communities, including those facing homelessness or are victims of domestic abuse.

How are rents normally calculated?

Social rents are set by Government legislation and Torus follows Government guidance when setting the rents for our properties and you can find the guidance for this on the Government website. Increases happen across the social housing sector as landlords, like Torus, raise rents in line with the government standard.

Normally, the government allows social housing providers to increase rents in line with the Consumer Price Index, plus up to an additional 1% per year, so that their income keeps up with price inflation. However, because inflation is currently higher than it has been in previous years, this would have meant rent increases of more than 11% for 2023/24.

Help and Support

What can I do if I have concerns about paying my rent?

After receiving the letter, any customers who are worried about how the changes may affect them should get in touch as soon as possible, as we are here to help. Our teams can work with them to reach a solution.

Customers living in a supported housing scheme you can also speak to a Scheme Manager.

However, customers may need to consider how they are going to budget for the rent increase. If they are struggling to pay their rent, they may be entitled to claim benefits, for example Universal Credit. Benefit eligibility is partly relative to the household income not just work status. Torus Foundation’s Financial Inclusion Team are here to help and can be contacted directly on 0300 123 5809, email info@torusfoundation.org.uk or use their online form.

Find out more about support from Torus Foundation here.

There are several organisations who can also help with money advice and support:

• Citizens Advice
• Turn 2 Us
• Step Change
• Money Advice Service

Find out more about maximising income & getting support with money.

Paying by Direct Debit

Most customers pay rent by Direct Debit because it’s straightforward, secure and means they never fall behind in their payments. It can be arranged weekly, fortnightly, four weekly or per calendar month on any date. Find out more here about setting up a Direct Debit.

Tenant Portal - services at your fingertips

Don’t forget customers can pay their rent and check their balance and manage their tenancy online 24/7 using the tenant portal. Set up an Account Now*!

Need help to get online? Anyone not confident using a computer/device and would like to build your digital skills and increase your online confidence, then speak to Torus Foundation who will be able to help. Call them on 0300 123 5809 or email info@torusfoundation.org.uk. If you are struggling to set up your account, contact Torus Customer Hub at info@torus.co.uk or call 0800 678 1894.

*You will need your Tenancy Number (available on your rent change letter), date of birth and an email address to set up your account