PI's: UC Arrears (UC Rent Debit)
Income: UC Arrears (UC Rent Debit)
SPBM 030: UC arrears as a proportion of UC rent debit
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 UC rent debit is used to measure the impact of UC on income and predict future impact for organisations where UC is still being rolled out. It also measures the effectiveness of the landlord in collecting rent from tennats in receipt of UC.
Definition
This indicator calculates the rent arrears of all current tenants in receipt of UC at the end of the period as a percentage of the total annual rent debit for tenants in receipt of UC (for the current financial year).
UC Arrears as a percentage of UC rent debit = UC arrears * 100 / Total UC rent debit
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.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.
Advance payments on some properties should not be used to offset arrears on other properties (technically, these overpayers could ask for their money back).
Landlords usually keep a record of those in receipt of UC from the rent verification requests from DWP and communication with tenants.
UC Arrears as a percentage of UC rent debit = UC arrears * 100 / Total UC rent debit
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.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.
Advance payments on some properties should not be used to offset arrears on other properties (technically, these overpayers could ask for their money back).
Landlords usually keep a record of those in receipt of UC from the rent verification requests from DWP and communication with tenants.
Formula
(A / B) * 100
A = The actual value of current tenant rent and service charge arrears for tenants on UC at the end of the reporting period.
B = The annual rent debit for tenants on UC for the current financial year. This is the net rent debit after deduction of rent loss due to voids.
A = The actual value of current tenant rent and service charge arrears for tenants on UC at the end of the reporting period.
B = The annual rent debit for tenants on UC for the current financial year. This is the net rent debit after deduction of rent loss due to voids.
Worked Example
At the end of the reporting period:
UC arrears (current tenants on UC) = £150,000
Total annual UC rent debit = £1,200,000
Calculation:
£150,000 × 100 ÷ £1,200,000 = 12.5%