If you are on a low income or out of work, you may be able to get help with your housing costs through Universal Credit. Housing support is one of the most important elements of Universal Credit for people who rent their homes, and understanding how it works can help you make sure you are getting everything you are entitled to.
Housing Costs Element of Universal Credit
Universal Credit can include a housing costs element to help cover your rent if you live in rented accommodation. This is paid as part of your monthly Universal Credit payment rather than separately. The amount you receive depends on your rent, the size of your household, your age and the area you live in.
Universal Credit housing support replaced Housing Benefit for most working-age claimants. If you were previously receiving Housing Benefit and have been moved onto Universal Credit, your housing costs should now be covered through the housing costs element of your Universal Credit award instead.
Local Housing Allowance — Private Renters
If you rent from a private landlord, the maximum housing support you can receive is set by Local Housing Allowance (LHA) rates. LHA rates are set by the Valuation Office Agency and vary by area and by the number of bedrooms you are entitled to based on your household size.
Your LHA entitlement is based on the number of bedrooms you need rather than the number you have. If your actual rent is higher than your LHA rate, you will need to cover the shortfall yourself from the rest of your Universal Credit payment or other income. If your rent is below the LHA rate, you receive support up to your actual rent only — you cannot receive more than your rent costs.
As a single person under 35 you are generally only entitled to the Shared Accommodation Rate unless you qualify for an exception — for example if you have a disability, are a care leaver or are fleeing domestic abuse. Ask your work coach if you think you may qualify for an exception to the single room rate.
Council and Housing Association Tenants
If you rent from a local council or housing association, Universal Credit will usually cover your eligible rent costs. However, deductions may apply in some situations that reduce the amount of housing support you receive.
The Bedroom Tax (officially called the Removal of the Spare Room Subsidy) reduces housing support by 14 per cent for one spare bedroom and 25 per cent for two or more spare bedrooms if you are a social housing tenant of working age. A bedroom is considered spare if it is not being used by someone who needs it based on the government's bedroom entitlement rules.
If other adults live in your home, a non-dependant deduction may be applied to your housing costs element to reflect the assumed contribution of that person towards household expenses. The amount deducted depends on the non-dependant's income and circumstances. Some people are exempt from non-dependant deductions — for example if you or your partner are blind or receive certain disability benefits.
Service charges are only eligible for housing support if they are directly related to the accommodation itself — for example cleaning of communal areas or lift maintenance. Personal service charges such as meals, laundry or personal care are not eligible.
Discretionary Housing Payments
If your Universal Credit housing support does not cover your full rent, you may be able to apply for a Discretionary Housing Payment (DHP) from your local council. DHPs are short-term payments administered by local councils using a combination of government funding and council resources. They are not a benefit and are not guaranteed, but can provide temporary help while you work to resolve your housing situation.
To apply for a DHP contact your local council directly — search for your council's name and "discretionary housing payment" to find the application process. DHPs are commonly awarded in situations involving the Bedroom Tax shortfall, Local Housing Allowance shortfall, temporary hardship while waiting for a benefit decision, or transition periods such as a recent bereavement or relationship breakdown.
Alternative Payment Arrangements
Universal Credit is normally paid directly to you as a single monthly payment and you are responsible for paying your rent to your landlord. However, if you are struggling to manage this or have fallen behind on rent, it may be possible to arrange for the housing costs element to be paid directly to your landlord instead. This is called an Alternative Payment Arrangement (APA).
You can request an APA through your Universal Credit online journal or by speaking to your work coach. Landlords can also apply to receive direct payments if they have evidence that a tenant is having difficulty managing payments or has accrued rent arrears of two months or more.
What to Do If You Are Falling Behind on Rent
If you are struggling to pay your rent it is important to act quickly. Rent arrears can escalate rapidly and put your tenancy at risk. Contact your landlord as soon as possible to explain the situation — many landlords and housing associations will work with you on a repayment plan if approached early rather than waiting until debt has built up significantly.
Speak to your work coach at your local Jobcentre Plus about whether you qualify for additional support through a Discretionary Housing Payment, an Alternative Payment Arrangement or the Flexible Support Fund. You can also apply for a Budgeting Advance through your Universal Credit online account if you need emergency funds to cover essential costs including rent arrears in some circumstances.
For independent housing advice, contact Shelter on 0808 800 4444 (free helpline) or Citizens Advice on 0800 144 8848. Both organisations provide free specialist housing advice and can help you understand your rights as a tenant and the options available to you.
Help for Homeowners
If you own your home and are receiving Universal Credit, you may be entitled to Support for Mortgage Interest (SMI). SMI is a government loan to help cover the interest element of your mortgage payments — note it is a loan secured against your property, not a grant, and must be repaid when the property is sold or transferred. Contact the SMI helpline on 0800 731 0469 for more information.
Further Information
For more information about housing costs and Universal Credit visit gov.uk/universal-credit/housing-costs. For information about Local Housing Allowance rates in your area visit gov.uk/guidance/local-housing-allowance. To find your nearest Jobcentre Plus office use our Jobcentre Plus office directory.
Please note: This website is independently maintained and is not affiliated with the Department for Work and Pensions or GOV.UK. Housing benefit rules are complex and individual circumstances vary — always verify your entitlement with your work coach or an independent adviser before making decisions based on this information.
