Universal credit, the Government’s catch-all benefit for those on low income, out of work or unable to work, has many different elements. One of those is a housing payment, designed to help you with the cost of wherever you’re living, and it can be used for a whole range of living situations.
Here we explain how universal credit housing payments can be used.
Renting from a private landlord
Roughly one in five of us rent from a private landlord. The price of doing this has gone up for many people lately, as landlords up rents amid rising interest rates and high demand. If you are eligible for universal credit, you can get help to cover your rent. The money is paid to you, but you then have to hand it over to the landlord. The amount you can receive is based on the needs of your household, with the rules expecting couples to share a bedroom while children under a certain age bunk together. You can work out how many bedrooms you’re eligible for using the Local Housing Allowance bedroom calculator.
Renting from housing associations or local authorities
If you live in a property managed by a housing association or local authority, such as council housing, you can get support for both rent and service charges. Social renters can also get help with bills from the main universal credit payment. Again, the housing payment is made to you, and you then pay it to your landlord. The amount is based on how much space you need, and is reduced if you have more bedrooms than your household needs.
Service charges for property owners
The most common form of accommodation in the UK is a home owned by the resident. More than six in 10 of us own our own homes. But though it is often seen as a route to security, homeowners can still face major costs. Universal credit recipients who own a home on a leasehold basis are eligible for help with service charges. These are the payments required by building owners for the maintenance of shared spaces and facilities such as rubbish collection.
Supported or sheltered Housing
You can apply for universal credit to assist with housing costs if you live in supported or sheltered housing and are not receiving ‘care, support, or supervision’ through your housing. However, universal credit cannot be used for housing costs if you live in supported or sheltered housing that provides ‘care, support, or supervision,’ temporary accommodation arranged by your council (for example, a B&B), or a refuge for survivors of domestic abuse. In these cases, you should apply for housing benefit instead.
What other support is there for housing costs?
Beyond universal credit, there are other avenues for obtaining financial assistance for housing-related challenges.
If you’re on low income or benefits, you could look into securing a council tax reduction. Your local council might also be able to provide additional help if your universal credit is not enough to cover your housing costs. Contact your council and ask about the “discretionary housing payment” to see if you can apply for this.
There is also another form of support for homeowners who have been on universal credit for three consecutive months. Support for mortgage interest (SMI) is different from other assistance because it’s paid as a loan, which you have to repay when you sell your home. It helps with payments towards your mortgage interest or loans taken out for repairs and improvements on your home.
It cannot be used to pay off any of your actual mortgage loan, only the interest accrued on it. SMI is available to people on an income-based benefit such as universal credit or pension credit.
