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Reduction in Universal Credit due to rent increase

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Comments

  • teaselMay
    teaselMay Posts: 801
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    Your total award has remained the same at 1480.18. But because more is going to your landlord you're receiving less, that's correct. You're actually receiving considerably more than many people on LCWRA, especially those who privately rent where the rent is a lot more than the housing allowance, for years my slightly below market rate rent was £300 more than the LHA and so most of my LCWRA element was going to make up the rent shortfall

  • NedS
    NedS Posts: 5,939
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    edited 2 June at 9:40AM

    As others have said, your UC amounts are correct. Your overall UC payments have not reduced (or increased), they have stayed the same due to erosion of your Transitional Protection (TP) element. You have less to spend on other things as you are now paying more of your income on rent as the rent has gone up.

    Your UC rates will also increase in your next payment due to the annual uplift, but unfortunately these increases will also further erode your remaining Transitional Protection element meaning that your overall UC award will not increase until the TP element has been completely eroded.

    You should view it that you are already receiving more UC than anyone without Transitional Protection, and without it you would have been significantly worse off, but it is gradually being tapered away over a number of years so that you and everyone else eventually receives the same rates of UC.

    I am a Forum Ambassador and I support the Forum Team on the Benefits & tax credits, Heat pumps and Green & Ethical MoneySaving forums. If you need any help on those boards, do let me know. Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
  • Newcad
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    edited 2 June at 5:00PM

    The TP was clearly stated in the original post.

    However the difference between the case here and the one on rightsnet is that:
    The case here is a Social rental so an increase in Social rent increases the Housing Element and thus the TP is reduced accordingly.
    The one on rightsnet is stated to be a Private rental, an increase in Private rent does not normally* affect the LHA capped Housing Element and so the TP should not be affected. (*The HE would only increase if the rent was below LHA rate).

    I had wrongly jumped to the conclusion that the case here was also a Private rental, but it turns out to be a Social rental.

  • teaselMay
    teaselMay Posts: 801
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    And social rental with direct payment of housing element to the landlord which is why it feels as though it's gone down

  • Newcad
    Newcad Posts: 2,145
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    edited 2 June at 5:18PM

    Indeed, and I'm begining to wonder if the case on Rightsnet is also a social rental with direct payments, despite what the advisor posting the question there has been told up to now.

    I've found in the past that people renting from a Housing Association can be unclear on whether they have a Social or Private rental. (eg."We don't pay the council, so it's not a council house, so must be a private rental").

  • HillStreetBlues
    HillStreetBlues Posts: 7,162
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    edited 2 June at 6:56PM

    It was, but I find asking for more details proves helpful as I have found sometimes posters are mistaken on the issue and haven't correctly summarised it.
    As poster has supplied the info I asked for, it's clear when the issue is.

    Let's Be Careful Out There
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