What is the impact of a 53-week rent year on housing associations and their residents?

The concept of a 53-week year might seem like a minor calendar anomaly, but for residents of social housing, it can have significant implications. In this blog, we’ll answer some common questions and explore how an extra week affects rent payments, budgeting, and overall financial planning for residents.

What is the 53-week year?

A standard year typically has 52 weeks, but every few years, we encounter a year with 53 weeks. This happens because a year is not exactly 52 weeks long; it’s approximately 52 weeks and 1 day (or 2 days in a leap year). Over time, these extra days accumulate, leading to a 53-week year.

How does a 53-week year affect rent payments and budgeting?

For our customers, rent is often calculated on a weekly basis. In a 53-week year, customers may find themselves needing to make an extra rent payment. This can be a significant financial burden, especially for those on fixed or low incomes.

For example:

• In a 52-week year, if a resident pays £100 per week, their annual rent totals £5,200.
• In a 53-week year, the same weekly rent results in an annual total of £5,300.
• This additional £100 can be challenging to manage, particularly if residents are not aware of the extra week in advance.

How can housing associations help residents with financial planning and support?

To mitigate the impact of a 53-week year, social housing providers and customers can take several steps:

1. Advance notice: Housing providers should inform residents well in advance about the upcoming 53-week year. This allows residents to plan and budget accordingly.
2. Flexible payment plans: Offering flexible payment options, such as spreading the extra week’s rent over the entire year, can help ease the financial burden.
3. Financial advice: Providing access to financial advice and support services can help residents manage their budgets more effectively and prepare for the extra payment.
4. Monthly rent charges: Providers moving from weekly to monthly charges is something Curo are considering. This will be time consuming and take co-ordination and consultation.

How does the 53-week year impact on benefits?

For those receiving Universal Credit, the 53-week year can also complicate matters. Benefits are typically calculated on a weekly basis, and an extra week can lead to discrepancies in payments as Universal Credit does not recognise the 53rd week.

What role does community support play?

Community organisations and support groups can play a vital role in helping social housing customers navigate the challenges of a 53-week year. By offering workshops, financial literacy programs, and one-on-one support, these organisations can empower customers to manage their finances more effectively.

Why do we need to advocate for legislative change?

As housing providers, we need to continue advocating for change in legislation to address the challenges posed by the 53-week year. We must call on the government to adjust benefit calculations to account for the extra week, ensuring residents are not left short.

By taking the steps explained in this article, housing providers aim to minimise the financial impact on customers and ensure that everyone is prepared for the 53-week year.

Conclusion

While the 53-week year only happens rarely, its impact on social housing customers can be significant. By understanding the implications and taking proactive steps, both housing providers and customers can better manage the financial challenges it presents.

Awareness, planning, support, and advocacy for change are key to making sure that the extra week does not become an undue burden for residents and housing associations. With 23 billion in benefits going unclaimed each year, and now the withdrawal of the Winter fuel payment unless customers receive means tested benefits, providers are left with more responsibility to support residents in financial difficulty, with no more money or resource. Without a policy change on the 53-week rent year to support residents, we will surely see tougher times ahead.