FAQs
How many tenants are affected?
At this stage we believe the majority of our tenants will be affected in some way.
How did this mistake happen?
The Government has guidelines for calculating social housing formula rents, using a set formula. We believe the Council did not apply this guidance as it should have, and based rents on an average capital value for each property by bedroom size rather than the individual capital value of each property.
What is my new rent?
Any tenants in the overcharged category should now be on their new lower rent. Letters were sent to all overcharged tenants informing them of their new rent on the 18th December 2024, the new rent came into effect on the 20th January 2025. If your rent has changed and you are in receipt of Universal Credit, you will need to report this change to the Department for Work and Pensions (DWP). If you are in the undercharged category, your rent will not be changing.
How do I report my rent change to DWP?
Your new rent should have been reported on or soon after the 20th January 2025 via your online DWP Universal Credit account. You will need to select the 'UC Account Home Page' and choose the 'Report a change of circumstances' option. Within that option you will need to select the 'Where you live and what is costs' option. For Universal Credit telephone claims, please report the change via the DWP helpline: 0800 328 5644.
Will my rent increase once I move from an Introductory Tenancy to a Secure Tenancy?
No, if you have been undercharged for your rent, the amount you pay will stay the same when you move onto a secure tenancy
How long has this been going on for?
We know this is a historic issue, however the exact period that we need to address will be confirmed when investigations have concluded.
How much money has been over paid?
Investigations are underway, tenants who have overpaid will be advised as soon as possible.
How much has been under paid?
We are still investigating this. However, at this stage we do not intend to claim back any money owed as a result of our undercharging. We have written to all tenants affected to let them know if they have been overcharged or undercharged when the full facts are known.
What actions have we taken so far?
As soon as this isolated error was identified and evaluated we have; self-referred ourselves to the Regulator for Social Housing (RSH) and are having ongoing discussions with; the RSH, the Department for Work & Pensions (DWP), Bishop Fleming (BF), the Devon Audit Partnership (DAP) the Valuation Office (VOA) and have secured an external legal opinion from a Kings Counsel. In addition to these regular meetings with external partners. We have also set up a dedicated officer group in order to manage the recovery process and consider all aspects of how the corrections can be delivered in the most timely and effective manner, whilst considering any additional support our tenants may require during this process.
Will I owe the Council any rent money if my rent was calculated too low?
It is not our intention to claim back any money from underpayments. However, it is likely that once a tenancy agreement comes to an end, new charges will come into effect for that property.
What do I do if I can’t afford my rent?
Recalculated rents, which are higher than existing rents, will only come into effect once a current tenancy agreement ends. Tenants may receive an annual increase in their rent in line with Government policy.
Anyone struggling to pay their rent should contact their Income Neighbourhood Officer for support by calling 01884 255255 or emailing htenancy@middevon.gov.uk
I have not received a letter, am I affected?
We have sent letters to all our current tenants who are on formula rent. If you have not received a letter, but believe you should have, please email rentcorrections@middevon.gov.uk with your full name and tenancy address.
When will I get my money back and how much will I get?
The amount of overpayment is currently being calculated, the Council needs to take into account if part or all of your rent was paid via Universal Credit or Housing Benefit, checks will also be made to see if there are any arrears owed to the Council.
We are aiming to apply refunds to anyone who is not in receipt of Universal Credit or Housing Benefit during the first tranche of refunds, which should begin in the coming months. Please read below for more information in relation to Housing Benefit and Universal Credit.
Housing Benefit and Universal Credit refunds
Housing Benefit: We are responsible for processing the Housing Benefit claims, and so we have been able to test the Housing Benefit recalculation process. This will need to be in place before any refunds can be made. We are at the final stages of testing this process.
Universal Credit: The Government’s Department for Work and Pensions (DWP) is responsible for Universal Credit. They have not yet confirmed how they will recalculate the Universal Credit that may have been paid towards rents, or provide a process for any repayments that we need to make to them. This is the last step that needs to be in place before we can start to process any refunds. We are in regular contact with the DWP, and we will update tenants as soon as we know more from the DWP.
How far back will you be refunding?
Mid Devon Housing has taken legal advice, and following this advice, we will be refunding incorrect rents which date back a maximum of six years. This is because six years is the statutory limitation (meaning the maximum time after an event that legal proceedings can be started).
What if I moved out years ago?
Former tenants may also have under or overpaid rent. We will be contacting former tenants, whose details we have. However, if you are a former tenant please contact rentcorrections@middevon.gov.uk providing your name and previous address and a correspondence address for where you live now, this will ensure we can send you a letter once our investigations have been completed, if you are affected.
Will my benefit be affected?
Claimants should not contact DWP or the Council benefits team directly and await further communications.
Your benefit may be affected by the change to your rent charge. It may cause an under or overpayment of Housing Benefit.
We will let you know of any changes to your entitlement as soon as we are able.
If you are in receipt of Council Tax reduction your entitlement may be affected if you are in receipt of Universal Credit. We will need to wait to hear from Universal Credit of any changes to your entitlement before we know if your reduction will be affected.
Should I stop paying my rent?
No, you should continue to pay your rent as normal. Until we have made the corrections on our computer system and worked with DWP on any benefit overpayments we will not know how much is owed to you. If you are struggling financially please contact your Income Neighbourhood Officer for support and advice.
When should I amend my Direct Debit?
If you are paying by Direct Debit and you have been overcharged, you should have received a letter advising you of the new amount to be collected, you do not need to take any further action. If you have been undercharged, your rent is staying the same and you do not need to take any action.
What if I currently have rent arrears?
On the 10th December, a decision was made by Cabinet to pause any pending possession/eviction proceedings for current tenants whilst the historic rent error issue is resolved. This decision only applies to those tenants who have been overcharged historically and normal casework will resume as soon as refunds have been issued and the arrears adjusted accordingly. It does not impact tenants who have historically benefited from a rent undercharge and these rent levels and rent collection arrangements will be unchanged for any tenants in this group.
Who is the Regulator of Social Housing? (RSH)
The RSH regulates the social housing sector to ensure quality homes and services are delivered for current and future tenants. They have the power to take action against social landlords where they fail to meet regulatory standards, hold providers to account and conduct regulatory inspections of social landlords every 4 years. Landlords can self-refer to the RSH if they believe they are in breach of the regulatory standards. To find out more about the RSH: Regulator of Social Housing - GOV.UK
What is a self-referral to the RSH?
Social landlords can self-refer to the RSH when they believe they may not be delivering the outcomes of regulatory standards. In this case, this is what Mid Devon District Council have done due to being non-compliant with the Rent Standard. The RSH will review the information we have provided, assess what we have done to fix the issue and what we plan to do. They will then look at this evidence and issue a regulatory judgement.
Do the underpayments affect my Council Tax?
No, the rent collected through the Council’s housing stock is separate to the General Fund where Council Tax sits. The Council’s housing stock is funded through the Housing Revenue Account and has no affiliation with Council Tax. It is important to note that any rental income from Council properties is always ring fenced into the Housing Revenue Account, which by law, must be used solely for Council housing purposes. This means our rental charges do not have an impact on any other Council service or charges.
What happens to the rent accounts of deceased tenants?
We will still be correcting rents for any deceased tenants that overpaid and will be in contact with the executor of the estate.
Be aware of scams
Refunds will not be made for some months yet and when we start making payments, we will not cold call you to ask you to give payment details such as a bank or building society account number over the phone. The Council will never ask you to make a payment of any amount to receive a refund. If you are in any doubt about a contact made in relation to this issue, please contact your Housing Officer for advice. You should also be vigilant when receiving communications that appear to be from the Department of Work and Pensions.