What Is the Universal Credit Housing Element?
The housing element is the part of your Universal Credit that helps pay your rent. If you are renting from a private landlord, a housing association, or your local council, you may be eligible for the housing element to cover some or all of your housing costs. This replaces what used to be called Housing Benefit for most working-age claimants.
How much you get depends on where you live, who you live with, how many bedrooms the DWP considers you need, and whether you rent privately or from a social landlord. This guide explains exactly how the housing element is calculated and what you can do to maximise your entitlement.
- What Is the Universal Credit Housing Element?
- How Much Can You Get?
- The Bedroom Tax (Under-Occupancy Charge)
- The Shared Accommodation Rate
- Service Charges
- How to Claim the Housing Element
- Alternative Payment Arrangements (APA)
- Homeowners and UC
- What Happens if Your Circumstances Change?
- Discretionary Housing Payments (DHP)
- Common Housing Element Problems and Solutions
How Much Can You Get?
The amount of your housing element depends on whether you rent privately or from a social landlord (council or housing association).
Private Renters: Local Housing Allowance (LHA) Rates
If you rent from a private landlord, your housing element is based on Local Housing Allowance (LHA) rates. These are set by the Valuation Office Agency and vary by area. The LHA rate covers the 30th percentile of local rents — meaning it covers the cheapest 30% of properties in your area.
LHA rates are set based on the number of bedrooms you are entitled to, not the number of bedrooms in your property. The rates are:
| Property Size | Who Qualifies |
|---|---|
| Shared accommodation rate | Single, under 35, no children (usually a room in a shared house) |
| 1 bedroom | Single person aged 35+ or couple with no children |
| 2 bedrooms | Couple or single with 1 child, or 2 children of the same sex under 16 |
| 3 bedrooms | 2 children of different sex (one over 10), or 3 children |
| 4 bedrooms (maximum) | Larger families — 4 bedrooms is the maximum LHA will cover |
You can check your local LHA rate on the GOV.UK LHA rates page by entering your postcode.
Important: If your actual rent is higher than the LHA rate for your area, you will need to pay the difference yourself. If your rent is lower than the LHA rate, you keep the difference as part of your UC payment.
Social Renters: Actual Rent
If you rent from a council or housing association, your housing element is usually based on your actual rent (minus any service charges that are not eligible). This generally means your full rent is covered, subject to the bedroom tax (see below).
The Bedroom Tax (Under-Occupancy Charge)
If you are a social housing tenant and you have more bedrooms than the DWP considers you need, your housing element is reduced. This is commonly known as the “bedroom tax” (officially called the under-occupancy charge).
How Much Is the Reduction?
| Spare Bedrooms | Reduction |
|---|---|
| 1 spare bedroom | 14% of your eligible rent |
| 2 or more spare bedrooms | 25% of your eligible rent |
Who Counts as Needing a Bedroom?
The DWP bedroom rules say you are allowed one bedroom for:
- Each adult couple
- Any other adult aged 16 or over
- Two children of the same sex under 16
- Two children of any sex under 10
- Any other child
- A carer (or team of carers) who provides overnight care for you or your partner
- A disabled child who cannot share a bedroom due to their condition
Exemptions From the Bedroom Tax
- You or your partner are of pension credit age
- You have a shared ownership property
- You are in supported or temporary housing
- You are a foster carer (you are allowed an extra room)
- An adult child is in the armed forces and deployed (their room is protected for up to 12 months)
The Shared Accommodation Rate
If you are a single person under 35 with no children renting privately, you are normally only entitled to the shared accommodation rate. This covers the cost of a room in a shared house, not a self-contained flat or house.
The shared accommodation rate is significantly lower than the 1-bedroom rate in most areas, which can make it very difficult to find affordable housing.
Exemptions From the Shared Accommodation Rate
You may qualify for the higher 1-bedroom rate even if you are under 35 if:
- You are aged 25+ and have lived in a homeless hostel for at least 3 months and received support
- You are a care leaver aged under 22
- You have a severe disability and qualify for the LCWRA element
- You are an ex-offender subject to multi-agency public protection arrangements (MAPPA)
- You were previously in the armed forces
Service Charges
Some rental payments include service charges for things like communal cleaning, maintenance, or heating. Not all service charges are covered by the housing element:
Eligible Service Charges (Covered)
- Cleaning of communal areas
- Maintenance of communal areas
- External window cleaning
- General upkeep of grounds and communal spaces
Ineligible Service Charges (Not Covered)
- Personal heating, hot water, or lighting
- Cooking facilities
- TV licence
- Internet or telephone
- Personal laundry
- Meals or food preparation
How to Claim the Housing Element
The housing element is not a separate claim — it is part of your Universal Credit. When you make your UC claim, you simply provide details about your housing costs:
What You Need to Provide
- Your tenancy agreement — a copy or key details from it
- Your landlord’s details — name, address, and contact information
- Your rent amount — how much you pay and how often
- Proof of rent payments — bank statements or rent receipts
Verification
The DWP may contact your landlord to verify your tenancy. This is standard procedure and your landlord is expected to cooperate. If your landlord does not respond, it could delay your housing element.
Alternative Payment Arrangements (APA)
Normally, the housing element is paid to you as part of your UC payment, and you are responsible for paying your landlord. However, in some cases, the housing element can be paid directly to your landlord. This is called an Alternative Payment Arrangement.
When Is APA Used?
- At your request: You can ask for your rent to be paid directly to your landlord if you find it easier to manage
- Rent arrears: If you fall more than 2 months behind on rent, the DWP can automatically pay your landlord directly
- Vulnerability: If you have difficulty managing your finances (due to addiction, mental health, learning difficulties, etc.)
- Landlord request: Your landlord can request direct payment if you are in arrears
How to Request APA
Contact your work coach through your UC journal and ask for your housing element to be paid directly to your landlord. Provide your landlord’s bank details. The DWP will usually agree if you have a history of rent arrears or difficulty managing payments.
Homeowners and UC
If you own your home and have a mortgage, you cannot get the housing element. However, you may qualify for Support for Mortgage Interest (SMI) after a 9-month waiting period. SMI is a loan, not a grant — it is secured against your property and must be repaid when you sell your home or transfer ownership.
SMI covers the interest on your mortgage (not the capital repayment) up to a maximum of £200,000 of mortgage debt.
What Happens if Your Circumstances Change?
You must report changes that affect your housing costs through your UC journal:
- Moving home: Report your new address and rent as soon as you move. Your housing element will be recalculated for your new area
- Rent increase: Report any rent increase. If you rent privately, your housing element is still capped at the LHA rate regardless of your actual rent
- Someone moves in or out: This can change the number of bedrooms you are entitled to and affect your housing element
- Becoming a homeowner: If you buy a property, your housing element stops
Discretionary Housing Payments (DHP)
If your housing element does not cover your full rent and you are struggling, you can apply for a Discretionary Housing Payment from your local council. DHPs are extra payments designed to help people in financial difficulty with their housing costs.
Who Can Get DHP?
- People affected by the bedroom tax
- People whose LHA rate does not cover their rent
- People affected by the benefit cap
- Anyone facing a shortfall between their housing element and their actual rent
How to Apply
Contact your local council directly. Each council has its own application process and budget for DHPs. Applications are typically assessed based on your financial circumstances and the reason for the shortfall.
DHPs are usually awarded for a fixed period (3 to 12 months) and can be renewed if your circumstances have not changed.
Common Housing Element Problems and Solutions
My housing element does not cover my rent
If you rent privately, this is common because LHA rates only cover the cheapest 30% of local rents. Options include: applying for DHP, looking for cheaper accommodation, negotiating a lower rent with your landlord, or taking in a lodger (declare this to the DWP).
My landlord will not accept UC tenants
While it is technically illegal for landlords to discriminate against benefit claimants, it still happens. Offering direct payment to the landlord (APA) and providing references can help. You can also seek support from Shelter or your local council.
I am in rent arrears
Contact your work coach immediately. The DWP can set up direct payment to your landlord and arrange for arrears to be deducted from your UC (up to a maximum percentage). Also apply for DHP from your council and speak to your landlord about a repayment plan.
Last updated: March 2026. Information based on confirmed DWP housing element rules. LHA rates vary by area — check GOV.UK for your local rates. This guide is for informational purposes only and does not constitute financial, legal, or housing advice.