What does the 53-week year mean for Universal Credit payments?
When calculating Universal Credit, the Department for Work and Pensions (DWP) base your housing costs on a 52-week year. This is the case even when there is an extra week in the year.
The DWP does not change the way it calculates Universal Credit payments on a 53-week year, which means that your monthly payments will not cover the monthly rent in 2024/25.
To calculate the amount that you need to pay, look at how much rent you are charged each week and use the following calculation.
So, for example, if your rent was £100 per week:
- You would first work out the amount Universal Credit will pay: £100 x 52* ÷ 12 = £433.34
- You would then work out how much your rent is in a 53-week year: £100 x 53 ÷ 12 = £441.67
- You would then take the larger amount and minus the smaller amount: £441.67 – £433.34 = £8.33
In this example, the customer would need to pay the £8.33 that is not covered by Universal Credit before the 30th March 2025 to avoid falling into debt.
*Please note, if you have non-charging weeks, you will need to use the usual number of weekly charges you have each year, instead of the 52.