What happens if on UC and private landlord increases rent?

Caiper

Hello everyone posting on behalf of my sister

She receives UC to help with her private rental. It was a years contract which moved to rolling monthly years ago. Her rent has been at £600 pm through all time. Her landlord has informed her that he wishes to raise the rent to £900 from 1st March. This is still below market rate (she can't see anything else in the borough for under £1050) so is not an unfair amount but still a big jump.

Can she inform UC in advance using his letter as proof? Or does she have to wait until she is paying the new amount and submit bank statements to get the new claim backdated? She lives in England if it makes a difference, and the £900 is still below Local Housing Allowance Rates (We think)

Hope these arent stupid questions!

Thank you

calcotti

You should be able to evidence of a change by having a letter from her landlord. However she may not be able to report in advance of the change occurring.

Note that the amount of help she can get may be less than the rent. As you note, the help is limited by the a Local Housing Allowance applicable for her postcode. You can check the rate here
https://lha-direct.voa.gov.uk/Search.aspx
if she is single and below 35 she only gets the shared room rate (unless she receives a disability benefit)

Any increase will be applied from the start of her UC period in which the change occurs.

huckster

On UC changes can only be reported on the date they occur or ASAP after the date. So do not notify a change now, if the change in rent is from a future date. Wait until the date of the rent change, then report change of circumstances under the section where I live and what it costs. And send a journal message to advise the landlord has increased rent and you have landlords letter to confirm this. You will then be asked to provide letter so UC can verify the change.  As per previous post local housing allowance limit will apply.

calcotti

huckster said:

On UC changes can only be reported on the date they occur or ASAP after the date.

Thanks huckster, that’s what I thought but not with 100% confidence! Glad to have it confirmed.

HillStreetBlues

How does a rent increase work with UC? (on this assuming rent is same as LHA)
Say the OP assessment runs 15-14
So from 15th to 28th Feb paying old amount, then 1st to 14th Mar paying new amount
What will the OP get paid?  As if just taken on  last day of assessment  would be overpay the difference in two weeks rent (about £150)

calcotti

The payment for the assessment period is calculated for the whole period based on the circumstances on the last day of the period. If a change has occurred the timing of the change makes no difference, Only the circumstances on the last day are taken into account.

If the rent goes up the claimant will receive a little more help than their actual rent obligation for the period.

If the rent goes down the claimant gets less help than their actual obligation.

Obviously if the claimant is already getting the maximum permitted then there will no change anyway regardless of any increase in the actual rent.

HillStreetBlues

calcotti said:

The payment for the assessment period is calculated for the whole period based on the circumstances on the last day of the period. If a change has occurred the timing of the change makes no difference, Only the circumstances on the last day are taken into account.

If the rent goes up the claimant will receive a little more help than their actual rent obligation for the period.

If the rent goes down the claimant gets less help than their actual obligation.

Obviously if the claimant is already getting the maximum permitted then there will no change anyway regardless of any increase in the actual rent.

Thanks and that leads to another question,
Why does the OP have to wait to submit the new rental amount?
Won't updating anytime in the assessment period have the same effect, as the changed of circumstances will be deemed to have started from the 1st day of the assessment period.

poppy12345

HillStreetBlues said:

calcotti said:

The payment for the assessment period is calculated for the whole period based on the circumstances on the last day of the period. If a change has occurred the timing of the change makes no difference, Only the circumstances on the last day are taken into account.

If the rent goes up the claimant will receive a little more help than their actual rent obligation for the period.

If the rent goes down the claimant gets less help than their actual obligation.

Obviously if the claimant is already getting the maximum permitted then there will no change anyway regardless of any increase in the actual rent.

Thanks and that leads to another question,
Why does the OP have to wait to submit the new rental amount?
Won't updating anytime in the assessment period have the same effect, as the changed of circumstances will be deemed to have started from the 1st day of the assessment period.

You can't report a change before the change has occurred.

HillStreetBlues

poppy12345 said:

You can't report a change before the change has occurred.

You can on housing benefit, so was wondering if for Universal Credit the legislation is written differently?

calcotti

DWP have, as far as I know, always resisted taking details of a change before it occurs for any benefit ( on the reasonable basis that something else might happen in the interim such that the change might not occur). Whether or not there is any legislative background I don’t know (and can’t be bothered to look at the moment).

HillStreetBlues

I'm not saying it can or can't be,  but would seem a backward step compared  to HB.
As we see on these boards people are concerned that the changes will not be actioned  in time, especially toward the end of assessment period.