Apology after council tenants hit with unexpected rent bill after 'admin error'

The error has left people who rent from the authority with an extra week’s rent to pay – and it applies to all tenants.

Usually, annual rent is calculated for a 52-week rent year period and then paid through rent accounts over a 48-week period.

But because there will have been 53 Mondays during the calculation period instead of the usual 52, tenants will be billed for the ‘extra’ week.

In a letter sent to tenants, David Watts, NNC executive director for housing, said: “Firstly, I would like to apologise for having to write and notify you of a necessary correction to your rent account for the financial year of 2024/2025.

“Ordinarily, annual rent is calculated for a 52-week rent year. This is then paid through your rent account over a 48-week period.

"There are usually 52 Mondays in a rent year, which runs from the first Monday in April until the end of March the following year. This year (2024) April 1 fell on a Monday, therefore, this rent year runs from April 1, 2024 to March 31, 2025 and is a 53-week rent year.”

This year, a 53-week rent period should have been calculated and paid through rent accounts over the 48-week period.

Mr Watts said: “Unfortunately, the rent calculation which determined your rent and payment schedule for this year did not include a 53-week rent period and as a result, one weeks rent for this year remains outstanding.”

NNC is required to have an entirely separate account for its housing stock called the Housing Revenue Account.

The account is separate to all other services delivered by the council. All rental income is paid into the account, and income funds all aspects of running the housing service, including maintenance of properties.

Mr Watts said: "Whilst I recognise that this outstanding amount has occurred due to an administrative error, to enable us to manage our stock, it is necessary for us to correct the error made and make arrangements to collect the outstanding rent.”

He added: “The administrative process and error that has occurred has been investigated and corrected, so this error should not occur again in the future.

“I am genuinely sorry for the error and the confusion that this has caused, and I offer my unreserved apologies to you.”

There will be slightly different arrangements for collecting the rent depending on tenants’ circumstances.

Tenants, in receipt of Housing Benefit will have their housing benefit entitlement recalculated in April. Income officers will be in touch to advise tenants if any action is required.

Those tenants in receipt of Universal Credit will need to pay an additional week as monthly UC payments do not fully cover the rent in years where there are 53 weeks.

People who are not in receipt of Universal Credit or Housing Benefit will be required to make rental payments for the full 53 weeks, spread out through rent accounts over the usual 48-week payments.

North Northants Council has been contacted for a comment.

Tenants in the Corby area should email [email protected] to seek advice and support.