How we will calculate and collect your rent
From April 2018, we are planning to change the way we calculate your rent to make it easier for you to budget and pay your rent. Please tell us what you think.
Currently, the amount of rent you pay for your home is calculated by dividing the rent for the year by 48 weeks. This means that unless you have rent arrears, you do not have to make a rent payment for two weeks in April and a further two weeks in December.
Given very few people are now paid weekly and Universal Credit (which includes Housing Benefit) is paid in monthly instalments, we plan to spread your rent over 52 weeks instead of 48 weeks.
Although this means we will collect rent every week, your weekly charge will be less from April 2018.
The following example will help you understand the new rent calculation:
Mr and Mrs Brown's rent is a total of £4,681.44 per year. When divided by 48 weeks, they pay £97.53 per week.
From April 2018, Mr and Mrs Brown's rent will be divided by 52 weeks meaning they will pay £90.03 per week.
From April 2018, we will also apply the 1% government rent reduction, reducing your weekly payment further.
We have put together a short video to explain the changes.
For more information about Universal Credit, please follow the link: www.tchg.org.uk/what-is-universal-credit/
If you have any questions or comments on the proposed changes to the way your rent is calculated, please contact us by filling in our online form. We will contact you again before the end of February 2018 to let you know how much your new rent will be.