If you’re renting your home and claiming Universal Credit, you may be entitled to extra money to help with your housing costs. This is called the housing element of Universal Credit, and it can cover rent payments and some service charges.
Whether you rent privately, through a housing association, or from your local council, here’s what you need to know.
What Does the Housing Element Cover?
You can use the housing part of Universal Credit to help pay for:
- Rent to a private landlord.
- Rent and eligible service charges from a housing association or local council.
- Certain service charges if you own your home (but not the mortgage itself, more on that below).
If you’re eligible, this payment is included as part of your monthly Universal Credit amount.
Private Rent, Local Housing Allowance (LHA)
If you rent from a private landlord, the amount you get is based on the Local Housing Allowance (LHA). This depends on:
- The number of bedrooms you’re entitled to.
- The area you live in.
LHA rates vary by location and are set by the local council. If your rent is higher than your LHA rate, you’ll need to pay the difference yourself, unless you’re able to get extra help (see Discretionary Housing Payments below).
Council and Housing Association Tenants
If you rent from a local authority or housing association, your housing support will usually cover:
- Your full rent.
- Any eligible service charges.
However, deductions may still apply depending on your circumstances, such as if you’re under-occupying a property (also known as the Bedroom Tax).
What If You Own Your Home?
Universal Credit doesn’t help with mortgage repayments, but you may be able to apply for Support for Mortgage Interest (SMI), a government loan that helps pay the interest on your mortgage or certain home improvement loans. To be eligible, you must have been claiming Universal Credit for at least 3 consecutive months.
Temporary, Sheltered or Supported Housing
If you live in:
- Temporary accommodation arranged by the council.
- A refuge for domestic abuse survivors.
- Or supported housing where you receive care or supervision.
You cannot get Universal Credit to help with rent. Instead, you’ll need to apply for Housing Benefit through your local council to cover your housing costs. You can still claim Universal Credit for your other living costs.
Discretionary Housing Payments (DHPs)
If your housing element doesn’t cover all of your rent, you might be eligible for extra help through a Discretionary Housing Payment (DHP) from your local council. This could help with:
- Rent shortfalls.
- Rent deposits.
- Moving costs.
- Advance rent for a new tenancy.
You’ll need to contact your local council directly to apply.
How to Claim
When you apply for Universal Credit, make sure you include details about your housing situation:
- Who you pay rent to.
- How much you pay.
- Whether there are any service charges.
Upload your tenancy agreement if requested. If your housing situation changes (e.g. you move), update your online Universal Credit account immediately.
Scottish Claimants
If you live in Scotland, you can choose to:
- Have your housing payment sent directly to your landlord.
- Receive your Universal Credit twice a month instead of monthly.
You’ll be offered this option once you start claiming.
If You Become Homeless
If you lose your home while claiming Universal Credit, let the DWP know as soon as possible. If you need a temporary pause on job-seeking responsibilities, your work coach can grant an easement, giving you time to find new accommodation.
You may still be eligible for support with temporary housing through Housing Benefit.
Key Takeaways
- The housing element of Universal Credit can help with rent and service charges.
- Private renters’ support is based on Local Housing Allowance rates.
- If your rent isn’t fully covered, apply for a Discretionary Housing Payment.
- For supported or temporary housing, apply for Housing Benefit instead.
- Always report any changes in your housing situation straight away.
Need Help?
- Use a benefits calculator to estimate how much you could get.
- Contact your local council for help with Council Tax Reduction or DHPs.
- Speak to a housing adviser or charity such as Shelter if you’re struggling to pay rent or facing eviction.
Don’t Forget
If you’re managing housing costs through Universal Credit, you may also be eligible for free home insulation or heating upgrades through schemes like ECO4 or the Great British Insulation Scheme. These government-backed programmes can help make your home warmer, more energy-efficient, and potentially save you money on your bills.
Checking your eligibility here. It’s quick, free, and could help reduce your overall household costs.
People Also Ask
What are the housing costs of Universal Credit?
Universal Credit can help with rent and some service charges, paid as part of your monthly UC payment. You’re usually responsible for paying your landlord directly. Homeowners can’t get the housing element for mortgage costs.
How does UC verify housing costs?
UC checks housing costs by contacting your landlord through a form or the Landlord Portal to confirm rent details. You may also need to provide evidence such as a tenancy agreement, rent book, or recent rent statement.
How long does it take for Universal Credit to pay housing costs?
Your first UC payment, including housing costs, usually takes at least 5 weeks. After that, payments are made monthly on the same date. You can request to have rent paid directly to your landlord in some cases.
What is the highest amount of Housing Benefit you can get?
You can’t receive more than your actual rent or the Local Housing Allowance (LHA) rate for your area, whichever is lower. Current LHA rates are listed on the VOA website.
Can Universal Credit pay full rent?
UC may not cover your full rent, especially in private rentals. The amount depends on your location, household size, and LHA rate, but you can apply for a Discretionary Housing Payment (DHP) if there’s a shortfall.
Will UC backdate my housing costs?
UC housing costs can be backdated for up to one month if you have a good reason for a late claim, such as illness. You must request this when applying and provide supporting evidence.
What triggers a Universal Credit review?
A review happens if you report or fail to report changes, such as a new job, income change, or move. The DWP may also carry out random or internal checks to ensure your claim is accurate.
Will UC pay my mortgage?
UC doesn’t cover mortgage repayments, but after three months you may qualify for a Support for Mortgage Interest (SMI) loan. This government loan covers interest only and must be repaid when you sell your home.
What is the Housing Benefit cap on Universal Credit?
Housing Benefit counts toward the benefit cap, but Council Tax Support and DHPs don’t. In Greater London, the cap is £486.98 per week (£25,323 a year) for couples, including those with children.
What is proof of housing costs for Universal Credit?
You can prove housing costs with a tenancy agreement, rent book, or landlord’s letter confirming rent and tenancy details. Homeowners can provide a mortgage agreement or statement.
Useful Resources:
- Housing costs and Universal Credit
- Local Housing Allowance
- Bedroom Tax
- Housing Benefit
- Discretionary Housing Payment
- Universal Credit online
- Benefits Calculator
Cost of Living Support Available:
- Household Support Fund (England)
- Cost of Living Payments
- Support for Mortgage Interest (SMI)
- Mortgage Guarantee Scheme
- Council Tax Reduction
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy: Energy Company Obligation
- Ofgem Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem Energy Company Obligation (ECO)
- UK Government, Help from your energy supplier: the Energy Company Obligation
- Which? Energy Company Obligation (ECO)
Other Support Available:
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