Universal Credit and paying rent

After you get your first Universal Credit payment, you can choose to have your housing costs paid directly to your landlord or carry on paying them yourself.

If you’re claiming Universal Credit in Northern Ireland, your housing costs will automatically be paid to your landlord. However, you can still choose to pay your landlord yourself if you want.

The housing element of Universal Credit is designed to cover some or all your rent and any service charges on the property. How much you get depends on whether you’re a private or social tenant.

If you rent privately, your housing costs are based on the Local Housing Allowance (LHA) for your area.

Find the current rates of LHA where you live:

• England and WalesOpens in a new window
• ScotlandOpens in a new window
• Northern IrelandOpens in a new window

The number of people who live in your home and the number of bedrooms is also important. If you have any spare bedrooms, you’ll only get housing costs to cover a smaller property. For example, if you’re single, aged over 35 and have no dependent children, the LHA will be based on the cost of renting a one bedroom flat locally. 

If you pay rent to a local authority, council or housing association, you’ll get your full rent as part of your Universal Credit payment.

However, this is reduced if it’s decided you have more bedrooms than you need.

If you’re making a new Universal Credit claim, it takes five weeks to get your first payment. It’s a good idea to tell your landlord so they're aware of your situation.

If you’re worried about how you’ll pay the rent, it’s important to talk to them about what you can do until you get your first payment.

If you’re living in social housing, many housing associations and councils offer support to help you work out how to pay your rent on Universal Credit. It can be worth talking to them if you’re worried about how you’ll manage. Sorting this out early can help you avoid falling behind on your rent.

You can apply for a Discretionary Housing Payment from your local council to cover the shortfall if you can’t afford rent while waiting for your first Universal Credit payment. Find out how to contact your local council at GOV.UKOpens in a new window

You can apply for an advance, which could help with your rent until you get your first payment.

Find out more in our guide Universal Credit advance payments.

Being responsible for your own rent payments might mean you’ll need to make some changes to the way you budget.

There are a few things you can do to make paying your rent easier. Choose what works best for you. Here are a few tips.

Ask your landlord if it’s possible to move the day your rent is due closer to your Universal Credit payment day. Some will let you do this.

When you’ve had your first Universal Credit payment and you know what day it will be paid, set up a standing order or a Direct Debit for your rent payment.

That way, as soon as the money comes in, the rent goes straight out again.

Then set up a standing order so that as soon as your Universal Credit payment goes into your main account, your rent goes out to the separate account. It will sit there until rent day.

Use this for your spending money and leave the money for your rent, and other bills, in your bank account. Be aware that you’ll be charged fees for using a prepaid card.

If you know you’ll be tempted to use your rent money for other things, try to come up with an arrangement where you don’t have access to it. For example, by asking someone else to look after it for you.

Talk to your landlord if you’re having trouble paying the rent.

It’s important to:

• keep them updated on your situation
• always open their letters and return their calls
• try to talk to them and find a practical solution.

This will show you’re trying to deal with the situation. And it might prevent your landlord from taking further action, such as eviction.

It might be possible to come to an agreement with your landlord where you pay off the arrears month by month. If you do this, make sure you agree on an amount you can afford.

Be realistic. It’s better to make small regular payments than to agree to larger payments only to miss them because you don’t have the money. It’s a good idea to keep track of how much you owe in arrears.

If you’re really struggling with rent arrears, either you or your landlord can ask for your rent to be paid directly to your landlord until you can sort your finances out.

Ask your work coach or contact the Universal Credit helpline to set this up.

If you need support and help managing rent arrears or other debts, you can get free, confidential debt advice online, over the phone or face to face.

If your situation is getting out of hand or your landlord is threatening you with eviction, get urgent advice. These organisations can help:

• Find your nearest local housing service with ShelterOpens in a new window
• Find your nearest Citizens AdviceOpens in a new window