Repayment of Income Related Rent debt

Recovery of Income Related Rent debt can start once the debt has been established and rent effective date confirmed by the housing provider even if the new rent is effective from a future date.

Debt deduction arrangements depend on whether the client is getting financial assistance from MSD or not.

Income Related Rent debt can be recovered from:

• benefit
• Student Allowance
• extra help provided under a welfare programme
• or
• by issuing deduction notices For example, to a State Sector employer, a bank or a trust. MSD can deduct from weekly compensation for loss earnings or loss of potential earning capacity paid to the debtor by ACC.

Once an Income Related Rent debt is established and is to be recovered, it is manually added to TRACE.