Material difference to the rate of Income Related Rent
A change to the rate of Income Related Rent should only be activated and notified to the housing provider if the change makes a material difference.
The calculated rate of Income Related Rent is always rounded down to the nearest dollar.
Change to the rate making a material difference
A material difference, during a change in circumstances review, is where the new calculated rate of Income Related Rent is:
- an increase to the rate of $5 or more per week or
- a decrease to the rate of more than a dollar per week
Change to the rate making a material difference at annual review
A material difference, during an annual review, is where the new calculated rate of Income Related Rent is:
- an increase to the rate of a dollar or more per week or
- a decrease to the rate of more than a dollar per week
An increase to the rate of Income Related Rent of between a dollar and less than $5 per week is only activated and notified to a housing provider once a year. This is to ensure:
- that housing providers do not have to regularly change rents for very small increases during the year and
- that beneficiaries rate of Income Related Rent is not affected by small benefit rate changes
Housing provider may also consider material difference
On receiving notification of a new rate of Income Related Rent, housing providers may decide not to increase the rent they charge if they consider it would not make a material difference to the rate of rent charged.
For more information see:
Legislation
- Reviews of income-related rents section 116 Public and Community Housing Management Act 1992
