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.