My Money- Housing Benefit Lesson

​Housing Benefit can be claimed by anyone on Universal Credit, or on a low income to help pay your rent.

Your eligible rent is the amount used to calculate your Housing Benefit claim. It’s your actual rent plus any service charges you have to pay (such as for lift maintenance or a communal laundry) but not things like heating or water costs for your home.

Spare bedrooms

Your Housing Benefit could be reduced if you live in council or social housing and have a spare bedroom. The reduction is:

• 14% of the ‘eligible rent’ for 1 spare bedroom

• 25% of the ‘eligible rent’ for 2 or more spare bedrooms

Example

Your eligible rent is £100 per week, but you have 1 spare bedroom. That means your eligible rent is reduced by 14%, to £86 per week. Your Housing Benefit will be calculated using that figure.

Private rent

If you rent privately, your eligible rent amount is either your Local Housing Allowance (LHA) rate or your actual rent, whichever is lower.

​Eligible rent

​How You're Paid

The way you get paid Housing Benefit by your council depends on the type of tenant you are.

If you’re a:

• council tenant, it’s paid into your rent account (you will not receive the money)

• private or housing association tenant, it’s paid into your bank or building society account (rarely by cheque)

​Find your Local Housing Allowance rates