Housing Benefit is a means-tested benefit that helps with rent costs for people on low incomes. For most working-age people making new claims, help with rent now comes through the housing costs element of Universal Credit rather than Housing Benefit directly. But Housing Benefit still exists for pensioners, people in supported or temporary accommodation, and existing claimants who haven't yet moved to Universal Credit.
Who can claim Housing Benefit
You may be able to claim Housing Benefit if you pay rent, you're on a low income or claiming other benefits, your savings are below £16,000 (there's no upper savings limit for Pension Credit claimants), and you're not already receiving the housing costs element of Universal Credit.
In practice, the main groups still claiming Housing Benefit are people of pension age, people in supported accommodation, people in temporary accommodation provided by the council, and existing claimants who haven't been moved to Universal Credit yet.
If you're working age and making a new claim for help with rent, you'll almost certainly need to claim Universal Credit instead. The housing costs element of UC works on similar principles to Housing Benefit.
How much can you get
Housing Benefit can cover all or part of your eligible rent, depending on your income, household size, and the type of accommodation. For private renters, the maximum is set by Local Housing Allowance (LHA) rates, which are based on rents in the broad rental market area where you live.
LHA rates are set at the 30th percentile of local rents — meaning 30% of private rents in your area are at or below the LHA rate. If your actual rent is higher than the LHA rate, you'll need to make up the difference yourself. LHA rates are published by the Valuation Office Agency and vary significantly across the country.
The LHA rate you're entitled to depends on the number of bedrooms you're assessed as needing:
Shared accommodation rate: For single claimants under 35 without children. Based on the cost of a single room in a shared house.
One bedroom rate: For single claimants aged 35+, or couples without children.
Two, three, or four bedroom rates: Based on family size. Four bedrooms is the maximum under LHA.
The spare room subsidy (bedroom tax)
If you're a social housing tenant of working age and you have more bedrooms than the rules say you need, your Housing Benefit is reduced. One spare bedroom means a 14% reduction; two or more spare bedrooms means a 25% reduction. This is officially the "removal of the spare room subsidy" but widely known as the bedroom tax.
The rules on who needs which bedrooms are specific. A couple gets one bedroom. Children under 16 of the same gender share. Children under 10 share regardless of gender. A disabled person who needs a non-resident overnight carer gets an extra bedroom. A disabled child who can't share due to their condition may also qualify for a separate bedroom.
If you're affected by the bedroom tax and struggling, you can apply to your council's Discretionary Housing Payment (DHP) fund, which provides additional help on a case-by-case basis. You can also challenge the assessment if you believe the room calculation is wrong.
Non-dependant deductions
If other adults (non-dependants) live with you — adult children, friends, relatives — a deduction is made from your Housing Benefit on the assumption they contribute to the rent. The deduction amount depends on their income. This applies even if the non-dependant doesn't actually give you any money towards rent.
Some non-dependants don't generate a deduction — those receiving certain benefits, full-time students, and people under 25 on Income Support or Jobseeker's Allowance, among others.
How to claim
Claims for Housing Benefit are made through your local council. You can usually apply online, by phone, or by visiting the council offices. You'll need proof of identity, rent agreement details, income and savings information, and details of everyone in your household.
If you're eligible, Housing Benefit is usually paid directly to you (for private tenants) or to your landlord (for social housing tenants, though you can request direct payment). Payments are typically made fortnightly or four-weekly.
Overpayments
If you're paid too much Housing Benefit — because of a change in circumstances you didn't report, or an error by the council — you'll have to pay it back. Overpayments can build up quickly if your circumstances change and you don't report it promptly. Always notify your council as soon as your income, household, or rent changes.
The transition to Universal Credit
The government is gradually moving all Housing Benefit claimants of working age to Universal Credit through a process called managed migration. If you receive a migration notice, you have three months to claim UC before your Housing Benefit stops. It's crucial to act on the notice — if you miss the deadline, your Housing Benefit ends and you need to make a fresh UC claim.
Transitional protection means you shouldn't receive less under UC than you were getting under Housing Benefit at the point of migration (as long as your circumstances don't change). But the way UC works — monthly payments, the taper rate, assessment periods — is fundamentally different, so understanding UC before you're migrated is advisable.