Universal Credit payments for housing
As well as the Universal Credit monthly standard allowance, you may get extra money (called the housing element) to help pay your housing costs.
Help with housing costs
You may get help with your housing costs if you:
- pay rent to a private landlord
- pay rent, and some service charges, to a housing association
- pay rent, and some service charges to the Northern Ireland Housing Executive (NIHE)
- pay interest on your mortgage, and some service charges, if you or your partner own the property you live in
The housing element will be paid directly to your landlord. If you meet certain conditions you can ask for it to be paid to you, so you can pay your own rent.
If your housing element is paid to you and you stop paying your rent, your landlord can ask to have your future housing element, or any housing element they have not received, paid directly to them.
The housing element may not cover all of your rent. You will need to check this as you will have to pay the rest to your landlord.
If your Housing Benefit includes money for your rates, this will stop when you claim Universal Credit. You can find out more information on Rate Rebate scheme for people on Universal Credit
If you move home
Your housing costs are calculated at the end of each assessment period, based on your circumstances at that date.
If you move home, your housing costs will be paid to the landlord whose details are held by Universal Credit at the end of the assessment period. The housing costs can only be paid to one landlord and no part payments are possible.
It is your responsibility to make sure that your previous and current landlords receive the correct amount of rent you owe.
How much your housing element will be
To check how much your housing element will be, you need to know if your landlord is a Social Sector landlord or a Private Sector landlord.
- if your landlord is the NIHE or a housing association, you are a Social Sector tenant
- if your property is owned by a person or property company, rather than NIHE or a housing association, you are a Private Sector tenant
If you were getting Housing Benefit immediately before you claimed Universal Credit, you will continue to receive your Housing Benefit in the usual way for an extra two weeks after you claim Universal Credit.
If this extra Housing Benefit is paid to you and you owe your landlord rent, you must use it to pay off what you owe. If you do not owe rent, you can keep the extra Housing Benefit.
If your regular Housing Benefit is paid to your landlord, they will receive the extra Housing Benefit. Your landlord may put this towards any rent you owe, or you can ask them to pay it to you.
If you need help with Rates
If your Housing Benefit included money for your rates, this will stop when you claim Universal Credit.
Your Universal Credit payment will not include money towards your rates. If you are getting Universal Credit, you may be able to claim a Rate Rebate. You can find more information on the Rate Rebate Scheme for people on Universal Credit.
Temporary and Supported Accommodation
Universal Credit does not pay housing costs for people in supported or temporary accommodation.
Supported accommodation is accommodation provided by Northern Ireland Housing Executive (NIHE), a housing association, registered charity or voluntary organisation that provides you with care, support or supervision.
Temporary accommodation may be a hostel (which does not provide care, support or supervision), a short term rented property or short term bed and breakfast.
In these circumstances, you may be able to apply for Housing Benefit.
If you pay rent to a Social Sector Landlord
The housing element will be your actual housing costs and any service charges Universal Credit can cover, but not charges for utilities such as electricity or gas.
If your rent increases, you should report the increase to Universal Credit using your journal.
If you meet certain conditions you can request that your housing element is paid to you, allowing you to pay your own rent.
If your home is larger than you need, you will get less housing element. This is because the Social Sector Size Criteria (SSSC), sometimes called the ‘Bedroom Tax’, applies to Universal Credit.
Your housing element amount will be reduced by:
- 14 per cent if you have one bedroom that you do not need
- 25 per cent if you have two or more bedrooms that you do not need
If you are affected by the SSSC, you will be entitled to extra payments (known as mitigation payments). If you think you may be entitled to these payments, you can check your eligibility. These mitigation payments will normally be paid to your landlord, unless you pay your own rent to your landlord.
What Universal Credit means for Social housing landlords with tenants on Universal Credit
If you pay rent to a Private Sector Landlord
Your housing element will be:
- your actual housing costs
or
- the Local Housing Allowance rate, whichever is lower
The Local Housing Allowance (LHA) rate depends on the area you live in, who lives with you, and the number of bedrooms you need.
LHA rates are also based on private market rents being paid by tenants in a Broad Rental Market Area (BMRA). There are eight Broad Rental Market Areas (BRMAs) in Northern Ireland, and the current monthly rates for these are:
| Shared Room Rate | 1 Bed | 2 Bed | 3 Bed | 4 Bed | |
|---|---|---|---|---|---|
| Belfast BRMA | £329.15 | £605.47 | £676.86 | £752.07 | £954.91 |
| Lough Neagh Upper BRMA | £308.86 | £421.10 | £515.17 | £581.22 | £615.37 |
| Lough Neagh Lower BRMA | £362.78 | £422.97 | £526.43 | £596.64 | £652.87 |
| North BRMA | £322.50 | £520.52 | £535.85 | £580.00 | £641.44 |
| North West BRMA | £383.29 | £431.18 | £513.61 | £579.39 | £667.86 |
| South BRMA | £284.57 | £478.32 | £541.46 | £601.64 | £716.14 |
| South East BRMA | £346.32 | £476.33 | £626.71 | £706.01 | £865.22 |
| South West BRMA | £309.73 | £385.34 | £456.95 | £492.92 | £579.09 |
There is more information available on Local Housing Allowance
If your rent increases, you should report the increase to Universal Credit using your journal.
A shared accommodation rate (SAR) is paid to single Private Rented Sector claimants under the age of 35. The SAR does not apply to under 35's living in supported housing in the Private Rented Sector.
Some claimants who are under 35 and living alone may receive more than the ‘shared accommodation’ rate.
This will apply if you are:
- aged 18 to 24 and identified as a care leaver
- an ex-offender who poses a risk of serious harm to the public
- formerly homeless, aged 16 to 34 and receiving support to resettle back into the community
- on account of your disability, receiving:
- Attendance Allowance (which includes Armed Forces Independence payment and Constant Attendance Allowance, paid as part of Industrial Injuries Disablement Benefit or War Disablement Pension)
- DLA care part at the middle or higher rate
- PIP daily living part (either rate)
If any of these apply to you, to make sure you receive the correct housing amount you should tell your Work Coach as soon as possible, using your online account or contacting the Universal Credit Service Centre.
Messages to your online account will be answered as soon as possible during business hours.
If you meet certain conditions you can request that your housing element is paid to you, allowing you to pay your own rent.
You will need to provide evidence of your housing costs like a tenancy agreement or letter from your landlord. The evidence will need to confirm that you live in the property and are responsible for paying rent and include:
- tenant and landlord’s name, address, contact details
- property address
- start date of the tenancy and how long the term is for
- amount of rent and how often it is paid. If it includes a figure for rates, rent arrears, service charges or utilities, these need to be detailed separately
- deposit amounts if this applies
- signatures in all the correct places by all tenants and landlord or agent
The evidence will need to show your rent, rates, rent arrears, service charges and utility charges (if applicable) as separate amounts. This is because Universal Credit does not include payment for some of these charges.
Your housing element will include money towards your:
- rent
- eligible service charges
If your rent increases, you should report the increase to Universal Credit using your journal.
You can find more information on Universal Credit service charges
What Universal Credit means for Private sector landlords with tenants on Universal Credit
Other help with rent
If you rent from a private landlord and are entitled to the housing element of Universal Credit but it does not cover all of your rent, you may be able to get additional help with your rent from the Northern Ireland Housing Executive. This is called a Discretionary Housing Payment.
A Discretionary Housing Payment can help pay some of the difference between the rent charged by your landlord and the housing element of your Universal Credit award.
You can apply for the Discretionary Housing payment where, in some cases, a payment for the full difference between the rent charged by your landlord and the housing element of your Universal Credit award can be paid. Certain criteria will apply.
For more information you can contact the Northern Ireland Housing Executive or apply for the Discretionary Housing Payment
If you own your home
If you’re a homeowner, as well as the monthly standard allowance, you might be able to get Support for Mortgage Interest. This is a loan to help towards interest payments on your mortgage or other loans you’ve taken out for your home, that you will need to pay back.