Agenda item

To consider a motion on notice submitted by Councillors Caroline Jackson and Phillip Black.

Officer briefing published 12 March 2024.

Councillor Caroline Jackson proposed the following motion having given the required notice to the Chief Executive in accordance with Council Procedure Rule 15:-

”This Council notes that Universal Credit suffers from a perennial administrative problem that creates unfairness for housing tenants who pay rent weekly.

Universal Credit is calculated monthly on the basis of a 52-week year (364 charging days) and in a year with 53 Mondays, does not allow for the additional week’s rent levied by councils and housing associations. This occurs every five to six years and will impact residents in Lancaster District from 1st April 2024 affecting an estimated 1,470 council housing tenants who will have to find an extra week’s rent with no benefit payment to cover the cost. Residents in receipt of housing benefit are not affected because housing benefit is paid weekly, not monthly.

This council believes that regardless of the type of benefit received, the benefits system should be administered fairly to meet the needs of residents and councils.

This council also notes that the pressures caused by the cost-of-living crisis and in addition an extra week’s rent, will impact on some of the most vulnerable residents in the district who live on the lowest incomes. The potential impact on rent arrears to the Housing Revenue Account (HRA) may be significant and will require considerable administrative time from officers to manage.

This Council therefore resolves to write to the Secretary of State for the Department for Work and Pensions to request that the Universal Credit system be altered in 2024 by way of a payment adjustment and that a change is made so that this does not arise again in subsequent 53-week years.”

Councillor Phil Black seconded the motion.

An officer briefing note had been circulated to Councillors for the meeting and a information leaflet from North Lancashire Citizens Advice titled “What is a 53 week year and why does it matter?”

Councillor Jackson responded to a number of questions from Councillors. At the conclusion of a lengthy debate a vote was taken and the motion was clearly carried.

Resolved:-

This Council notes that

Universal Credit suffers from a perennial administrative problem that creates unfairness for housing tenants who pay rent weekly.

Universal Credit is calculated monthly on the basis of a 52-week year (364 charging days) and in a year with 53 Mondays, does not allow for the additional week’s rent levied by councils and housing associations. This occurs every five to six years and will impact residents in Lancaster District from 1st April 2024 affecting an estimated 1,470 council housing tenants who will have to find an extra week’s rent with no benefit payment to cover the cost. Residents in receipt of housing benefit are not affected because housing benefit is paid weekly, not monthly.

This council believes that regardless of the type of benefit received, the benefits system should be administered fairly to meet the needs of residents and councils.

This council also notes that the pressures caused by the cost-of-living crisis and in addition an extra week’s rent, will impact on some of the most vulnerable residents in the district who live on the lowest incomes. The potential impact on rent arrears to the Housing Revenue Account (HRA) may be significant and will require considerable administrative time from officers to manage.

This Council therefore resolves to write to the Secretary of State for the Department for Work and Pensions to request that the Universal Credit system be altered in 2024 by way of a payment adjustment and that a change is made so that this does not arise again in subsequent 53-week years.