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Income Related Rent : Contents

Notifying a new rate of Income Related Rent

When you have completed a review of a client's calculated Income Related Rent, you need to decide whether to activate and notify the housing provider of a new rate.

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.

For more information see:

Rate of Income Related Rent is not notified

If the calculated rate of Income Related Rent is not activated or notified to the housing provider then the rate of Income Related Rent stays the same as previously calculated.

The client is not advised in this situation.

Notifying housing provider and client of rent change

When you activate and notify a new rate of the Income Related Rent you must provide the client with:

  • an acknowledgement of the change in circumstances that has occurred
  • the date that it was determined that the change in circumstances took effect from
  • the new rate of Income Related Rent calculated
  • a statement the client has the right to request a review of the decision to recalculate the rate of Income Related Rent and
  • a statement making it clear that while the rate of Income Related Rent has been recalculated, it is the housing provider who actually decides whether there will be a change in the rent charged and the rent effective date
  • advise the housing provider that:
    • the change to the rate is due to a change in the applicable person's circumstances or
    • the change to the rate is due to insufficient information being provided by the applicable person and
    • the date that you determined that the change in circumstances has taken affect from and
    • the new rate of Income Related Rent calculated

Note during an annual review the housing provider will need to know if the change to the rate of Income Related Rent is due to the annual review, and the date of processing of the annual review.

Legislation

An applicable person is:

and

The rent effective date is the one-off date on which an increased rate of Income Related Rent is charged.

The rent effective date is aligned with the next charge date.