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53 week financial year what it means for you from April 2024

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

This happens every five or six years, because there are 365 days in a year or 366 in a leap year, which breaks down to 52 weeks in a year plus 1 day, or in a leap year 52 weeks plus 2 days. These extra days accumulate to add an extra week to the year.

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

Taking into account the 2 rent free weeks offered by Worthing Homes, there will be 51 Mondays that you will be charged rent in the financial year from 1 April 2024 to 31 March 2025 instead of the usual 50.

If you pay monthly (but not by Direct Debit)
For example, if your rent is £200 per week:
£200 x 51 weeks = £10,200 total
£10,200 ÷ 12 months = £850 per month
If you pay every four weeks
£200 x 51 weeks = £10,200 total
£10,200 ÷ 13 (four week periods) = £784.61 every four weeks
If you receive Universal Credit
With Universal Credit, the Department for Work and Pensions will only pay for 52 weeks. You'll need to budget for that extra week yourself. For a £200 weekly rent: £200 ÷ 51 weeks = £3.92
If you receive Universal Credit (with two rent-free weeks)
With Universal Credit, the Department for Work and Pensions will only pay for 52 weeks. You'll need to budget for that extra week yourself. For a £200 weekly rent: £200 ÷ 51 weeks = £3.92
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If you pay your rent weekly, there will be an extra week of rent to pay.

This will impact any of our customers who are on a weekly tenancy agreement or licence.

  • If you receive Universal Credit, the Department for Work and Pensions will NOT cover the extra week of rent – you will need to pay it.
  • Customers on a weekly tenancy or licence will need to pay for 51 weeks (your monthly rent calculation is weekly current rent X 51 weeks ÷ 12 months equals your monthly current rent).

However, if you are on Housing Benefits (HB, legacy benefits) you will not be impacted by this, as HB will cover this as they pay every week that it is charged.

The DWP only pay 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, if your rent is £200 per week this equals £10,400 per year. In a normal year, Universal Credit would divide that £10,400 by the 12 months of the year and pay us £866.66 per calendar month.

Unfortunately, they have confirmed that they won’t pay for this year's 53rd week. This means you will need to pay for the additional week yourself.

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

For example, if you pay £200 a week for your rent, you could divide this by 53 weeks and pay an additional £3.78 a week for 53 weeks.

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If you’re not sure what to do, please call our Contact Centre on 01903 703110 or email financialinclusion@worthing-homes.org.uk so we can help you with the options.

  • If you pay your rent every four weeks, you will need to multiply your weekly rent by 53 then divide it over 13 payments. E.g £200 weekly rent x 51 = £10,200 / 13 = £784.61 rent payment every four weeks

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 if you want 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.

If you pay through the Housing Solutions Portal every four weeks

  • You’ll need to change the amount you pay at the beginning of the new financial year by splitting the costs over 13 payments.

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

If you don’t pay, you’ll end up in arrears. However, we would encourage you to write to your local MP. We hope that if enough people highlight the shortfall the Department for Work and Pensions will cover the extra week,  the next time we have a 53 week financial year.

Please remember if you have an agreement with us or a court order in place you will also need to add that onto your rent amount.

 

 

Get in Touch

We're happy to help

Don’t forget we’re here to help you. If you’re worried about paying the extra week’s rent, get in touch with our Income Support team. They can help you with your money matters, whether it’s getting the benefits you’re entitled to or support with budgeting. Call 01903 703100 and ask to speak to a member of the team or email them at info@worthing-homes.org.uk