PI's: UC Arrears (Total Arrears)
Income: UC Arrears (Total Arrears)
SPBM 020: UC arrears as a percentage of total arrears
Rationale, Definition & Worked Example
Below you can find information regarding the rationale, definition and formula for this performance indicator. This includes a worked example to demonstrate how this indicator should be calculated.
Rationale
UC arrears as a percentage of total arrears is used to measure the impact of UC on income and predict future impact for organisations where UC is still being rolled out.
Some organisations currently report number of people on UC and the proportion of UC arrears / Global arrears.
Some organisations currently report number of people on UC and the proportion of UC arrears / Global arrears.
Definition
UC arrears = the actual value of current tenant rent and service charge arrears at the end of the reporting period for UC Claimants. It should include arrears due to late Housing Benefit payments and no adjustments should be made for this. We recognise that this might include arrears from before the tenant claimed UC, but it is not realistic to separate these out.
Total arrears = the actual value of current tenant rent and service charge arrears at the end of the reporting period. It should include arrears due to late Housing Benefit payments and no adjustments should be made for this.
This covers all General Needs rented stock (excluding garages). Court costs are separate sundry debts and should not be included in the calculation. Former tenant debts (even those which have followed a tenant to their current tenancy) are separate and should not be included in this calculation.
Total arrears = the actual value of current tenant rent and service charge arrears at the end of the reporting period. It should include arrears due to late Housing Benefit payments and no adjustments should be made for this.
This covers all General Needs rented stock (excluding garages). Court costs are separate sundry debts and should not be included in the calculation. Former tenant debts (even those which have followed a tenant to their current tenancy) are separate and should not be included in this calculation.
Formula
UC Arrears as a percentage of total arrears = UC arrears * 100 / Total Arrears
Worked Example
At the end of the reporting period:
Total arrears (all current tenants) = £500,000
Arrears relating to households in receipt of Universal Credit = £200,000
Calculation:
£200,000 × 100 ÷ £500,000 = 40%