Housing Benefit and Council Tax Support rates from April 2024

The changes will occur with the new financial year and the week many rents change. In 2024, new rates will change on 1 April 2024 for the following benefits:

• Council Tax Support.
• Housing Benefit when rent is paid monthly.
• Housing Benefit when rent is paid weekly or multiple times a week

New rates and allowances for the following means-tested benefits are increased on the first Monday after 6 April, the start of the tax year:

• Universal Credit
• Income Support
• Income-based Jobseeker's Allowance
• Income-related Employment and Support Allowance
• Pension Credit  

Rates also increase for most other social security benefits on this date. In 2024, benefits rates will increase on 8 April 2024. 

The assessment year for tax credits runs from 6 April one year to 5 April the following year. It is known as a tax year. Rates increase on 6 April 2024, the first day of the tax year.

There will be 53 Mondays in the 2024/25 financial year, from 1 April 2024 until 1 April 2025, with the last Monday on 31 March 2025.

It happens every five or six years because there are 365 days in a year or 366 days in a leap year, which breaks down to 52 weeks in a year plus one day or 52 weeks plus two days in a leap year. These extra days accumulate to add an additional week to the year.

52 weeks x 7 days = 364 days (one day fewer than an entire year or two days fewer than a leap year).

How will that affect me?

If you pay your rent weekly, there will be an extra week of rent to pay.

Who does it affect?

It will affect any of our customers on a weekly tenancy agreement or licence.

Customers on a weekly tenancy or licence with no rent-free weeks 

You will need to pay for 53 weeks (your monthly rent calculation is weekly current rent × 53 weeks ÷ 12 months equals your monthly current rent).

Customers on a weekly tenancy or licence with two rent-free weeks 

You will need to pay for 51 weeks (your monthly rent calculation is weekly current rent × 51 weeks ÷ 12 months equals your monthly current rent).

Customers on a weekly tenancy or licence with four rent-free weeks 

You will need to pay for 49 weeks (your monthly rent calculation is weekly current rent × 49 weeks ÷ 12 months equals your monthly current rent).

Customers on Housing Benefits and legacy benefits

You will not be affected by this, as Housing Benefit will cover this as they pay every week that it is charged.

If you are on Universal Credit?

The DWP only pays up to 52 weeks of rent per year and works out the weekly rent for those on Universal Credit by taking the total yearly amount and dividing it by 52 weeks. For example, £10,400 per year ÷ 52 weeks = £200pw rent.

Unfortunately, they have confirmed that they won't pay for week 53. It means you will need to pay for the additional week yourself.

We recommend you pay a little bit each week over the year.

Example:

If you pay £200 a week for your rent, you could divide this by 53 weeks and pay £3.78 a week for 53 weeks.

What happens to my rent-free weeks?

You will still have rent-free weeks, but there will be an additional week to pay, so in effect, you will lose one of your rent-free weeks but could cover the extra week's cost.

You will need to pay your rent for 51 or 49 weeks instead of 50 or 48 weeks.

I pay my rent every four weeks

If you pay your rent every four weeks, multiply your weekly rent by 53, then divide it over 13 payments. 

Example:

£200 weekly rent × 53 = £10,600

£10,600 ÷ 13 = £815.38 rent payment every four weeks

If you have rent-free weeks, you will need to do your weekly rent × 49 or 51 weeks ÷ 13.

If you pay by standing order every four weeks

You'll need to change the amount you pay through your bank at the beginning of the new financial year to split the costs of 13 payments.

If you pay by Direct Debit

We will adjust your payments and let you know how much they will be.

You'll need to change the amount you pay at the beginning of the new financial year to split the costs of 13 payments.

What can I do if I am unhappy about Universal Credit not covering the 53rd week?

Unfortunately, we can do nothing as you will still be responsible and liable as the tenant to pay the extra week of rent Universal Credit won't cover.

If you don't pay, you'll end up in arrears. However, we encourage you to write to your local MP, hoping the Department for Work and Pensions will cover the extra week the next time we have a 53-week financial year.

If you have an agreement with your landlord or a court order, you need to add that to your rent amount.