Understanding Housing Benefit
Housing Benefit is financial help towards your rent if you're on a low income or claiming benefits. It's administered by your local council and the amount you receive depends on your circumstances, income, and the rent you pay.
Important Note
Housing Benefit is being replaced by the housing element of Universal Credit for most new claimants. However, existing Housing Benefit claimants can continue to receive it until they're moved to Universal Credit or their circumstances change significantly.
Who Can Claim Housing Benefit?
You might be able to get Housing Benefit if you meet all of the following criteria:
You pay rent
You must be liable to pay rent on the property where you live
Your income is low enough
Your income (including savings over £6,000) must be below a certain level
You're not a full-time student
With some exceptions for students with children or disabilities
You live in Great Britain
You must be habitually resident in the UK, Ireland, Isle of Man, or Channel Islands
The Housing Benefit Calculation Process
Housing Benefit is calculated using a standard formula that takes into account your maximum rent, income, and applicable amount (your basic living needs).
Basic Formula
Housing Benefit = Maximum Rent - (Income - Applicable Amount)
If your income is less than your applicable amount, you may get your maximum rent covered in full.
Step-by-Step Calculation
Calculate Maximum Rent
Determine the maximum amount of rent that can be covered (subject to Local Housing Allowance rates for private tenants)
Calculate Applicable Amount
Work out your basic living costs based on your age, family situation, and any premiums you qualify for
Assess Your Income
Calculate your total weekly income including benefits, wages, pensions, and savings over £6,000
Apply the Formula
Use the formula to calculate your Housing Benefit entitlement
Step 1: Maximum Rent
The maximum rent that can be covered depends on whether you're a private tenant or social housing tenant.
Private Tenants - Local Housing Allowance (LHA)
For private tenants, the maximum rent is limited by Local Housing Allowance rates, which vary by area and property size.
LHA Categories (Examples for 2025)
| Category | Description | Example Rate (London) | Example Rate (Manchester) |
|---|---|---|---|
| Shared accommodation | Single person under 35 | £120.00 | £80.00 |
| 1 bedroom | Single person 35+, couple | £280.00 | £150.00 |
| 2 bedroom | Family with 1 child | £350.00 | £180.00 |
| 3 bedroom | Family with 2+ children | £425.00 | £220.00 |
Social Housing Tenants
For council and housing association tenants, the maximum rent is usually your actual rent, unless you're considered to be under-occupying (bedroom tax applies).
Under-Occupation Penalty (Bedroom Tax)
- 1 spare bedroom: 14% reduction in eligible rent
- 2+ spare bedrooms: 25% reduction in eligible rent
Step 2: Applicable Amount
Your applicable amount is the amount the government thinks you need to live on each week. It includes personal allowances and any premiums you qualify for.
Personal Allowances (2025 Rates)
| Category | Weekly Rate |
|---|---|
| Single person under 25 | £71.70 |
| Single person 25 or over | £90.50 |
| Couple both under 18 | £71.70 |
| Couple (one or both 18+) | £142.25 |
| Dependent child/young person | £77.78 |
Premiums (Additional Amounts)
You may be entitled to additional amounts if you meet certain criteria:
Family Premium
£17.85 per week - For families with children (only for existing claimants)
Disability Premium
Single: £38.85 per week
Couple: £55.40 per week
Severe Disability Premium
Single: £76.40 per week
Couple (both qualify): £152.80 per week
Carer Premium
£42.75 per week - If you or your partner receive Carer's Allowance
Step 3: Income Assessment
All your income is taken into account when calculating Housing Benefit, but some income is ignored (disregarded).
Income That Counts
- Wages from employment
- Self-employment income
- Most benefits (JSA, ESA, Income Support, etc.)
- Pensions (state and private)
- Rental income
- Savings and capital over £6,000
- Maintenance payments
Income Disregarded
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Child Tax Credit
- Working Tax Credit
- First £20 of part-time earnings (sometimes more)
- Savings and capital under £6,000
How Savings Affect Your Claim
£0 - £6,000
Ignored completely - doesn't affect your Housing Benefit
£6,001 - £16,000
Each £250 (or part of £250) above £6,000 counts as £1 weekly income
Over £16,000
You cannot get Housing Benefit if you have savings over £16,000
Worked Examples
Here are some practical examples to show how Housing Benefit is calculated in different situations.
Example 1: Single Person, Private Tenant
Situation: Sarah, 30, single, rents a 1-bedroom flat for £180/week, receives JSA
Calculation:
- Maximum rent (LHA rate): £150/week
- Applicable amount: £90.50/week
- Income (JSA): £90.50/week
- Housing Benefit: £150 - (£90.50 - £90.50) = £150/week
Sarah gets £150/week Housing Benefit (full LHA rate)
Example 2: Working Family
Situation: Mark and Lisa with 1 child, rent £200/week, Mark earns £300/week
Calculation:
- Maximum rent (LHA rate): £180/week
- Applicable amount: £142.25 + £77.78 = £220.03/week
- Income (with £20 disregard): £280/week
- Housing Benefit: £180 - (£280 - £220.03) = £120.03/week
They get £120.03/week Housing Benefit
Example 3: Pensioner with Savings
Situation: Robert, 70, social housing rent £120/week, pension £180/week, savings £10,000
Calculation:
- Maximum rent: £120/week
- Applicable amount: £90.50/week
- Savings income: (£10,000 - £6,000) ÷ £250 = £16/week
- Total income: £180 + £16 = £196/week
- Housing Benefit: £120 - (£196 - £90.50) = £14.50/week
Robert gets £14.50/week Housing Benefit
Special Circumstances
Some situations require special consideration in Housing Benefit calculations:
Non-Dependant Deductions
If you have adult children or other adults living with you who aren't your partner, deductions may be made from your Housing Benefit.
Weekly Deduction Rates (2025)
- £16.45: Non-dependant in full-time work earning £438+ per week
- £11.05: Non-dependant in full-time work earning £377-£437.99 per week
- £4.30: Non-dependant on benefits or not working
Service Charges
Housing Benefit can cover some service charges but not others:
- Covered: General maintenance, cleaning of communal areas, lift maintenance
- Not covered: Heating, lighting, hot water, meals, personal care
Temporary Absence
You can usually continue to receive Housing Benefit for up to 52 weeks if you're temporarily away from home for certain reasons (hospital, caring for relatives, fear of violence).
How to Claim Housing Benefit
To claim Housing Benefit, you need to apply through your local council. Each council has its own application process, but they all require similar information.
Contact Your Local Council
Find your local council's Housing Benefit team and request an application form or apply online if available.
Gather Required Documents
You'll need proof of identity, income, savings, rent liability, and any benefits you receive.
Submit Your Application
Complete the form accurately and submit it with all required evidence. Keep copies for your records.
Wait for Assessment
The council will assess your claim and notify you of their decision, usually within 14 days for new claims.
Getting Help with Calculations
Housing Benefit calculations can be complex, especially if you have multiple income sources or special circumstances. If you're unsure about your entitlement or think your benefit has been calculated incorrectly, don't hesitate to get help.
Citizens Advice, welfare rights organizations, and local council welfare teams can all provide assistance with Housing Benefit calculations and claims. Many councils also have online calculators that can give you an estimate of your entitlement.
Remember to report any changes in your circumstances promptly, as this can affect your Housing Benefit entitlement. Changes in income, household composition, or rent should be reported within one month.