diff --git a/app/models/case_log.rb b/app/models/case_log.rb
index 0261f7d6a..7a9bf6344 100644
--- a/app/models/case_log.rb
+++ b/app/models/case_log.rb
@@ -252,6 +252,7 @@ private
     self.tcharge = brent.to_f + scharge.to_f + pscharge.to_f + supcharg.to_f
     self.has_benefits = get_has_benefits
     self.nocharge = household_charge == "Yes" ? "No" : "Yes"
+    self.layear = "Less than 1 year" if renewal == "Yes"
   end
 
   def process_postcode_changes!
diff --git a/spec/models/case_log_spec.rb b/spec/models/case_log_spec.rb
index 8b704cf0e..baf63b4da 100644
--- a/spec/models/case_log_spec.rb
+++ b/spec/models/case_log_spec.rb
@@ -1153,6 +1153,22 @@ RSpec.describe CaseLog do
       record_from_db = ActiveRecord::Base.connection.execute("select has_benefits from case_logs where id=#{case_log.id}").to_a[0]
       expect(record_from_db["has_benefits"]).to eq("Yes")
     end
+
+    context "when it is a renewal" do
+      let!(:case_log) do
+        described_class.create({
+          managing_organisation: organisation,
+          owning_organisation: organisation,
+          renewal: "Yes",
+        })
+      end
+
+      it "correctly derives and saves layear" do
+        record_from_db = ActiveRecord::Base.connection.execute("select layear from case_logs where id=#{case_log.id}").to_a[0]
+        expect(record_from_db["layear"]).to eq(2)
+        expect(case_log["layear"]).to eq("Less than 1 year")
+      end
+    end
   end
 
   describe "resetting invalidated fields" do