Effective date of LHA changes

Universal Credit

Hi

I reported the indicative LHA rates (see earlier posts) which come into effect on 1st April. DWP has since confirmed the figures via a statutory instrument, called the annual uprating order, and explained when Universal Credit recipients can expect to receive payment of the new rates.

The order specifies, that the new rates will be paid to the tenant in the first "benefit assessment period" (BAP) after 8th April. In effect, this means, a tenant whose BAP runs from 8th April - 7th May will receive their first increased payment around 14th May whereas, tenants who have BAPS between 1st -7th April will need to wait until 7th June -14th June.
 

The approach being adopted here is at odds with the general rule, re the effective dates of changes. Normally, when a change takes place, it is applied from the start of the BAP in which the change occurs. Example

Tenant has a BAP running from 15th March -14th April. He moves into new tenancy on 12th April with higher rent, and immediately notifies UC, via his journal of the change

.DWP's Decision Maker awards the new rental charge, for the whole BAP period (15th March - 14th April) but pays nothing in rent in respect of the tenancy he has just left.

Using the same example, if DWP had simply applied the general rule to the new LHA rates, the tenant would have received their award at new rate on 21st April.

I hope this note hasn't confused you. 

Bill