Example of debt due to late notice of change in circumstances

A client starts part-time work on 18 February 2023 and does not advise MSD of the changes to their income until 2 July 2023.

The client's rate of Income Related Rent is recalculated, and they are notified along with their housing provider of the new rate of Income Related Rent.

The housing provider confirms the rent effective date for rent change as 24 July 2023 (which is the first rent effective date after the 14 days' notice period plus the service period.

MSD establishes an Income Related Rent debt 61 days after the date of the change in circumstances (20 April 2023) to 23 July 2023 (the day before the rent effective date).

The client's rent increase takes effect from 24 July 2023.