Updated 15 January 2025

Universal Credit & Housing

How the housing element of Universal Credit works, getting it paid directly to your landlord, and avoiding arrears.

Relevant for:

Currently Homeless

At Risk

Important Warnings

Universal Credit can be reduced if you do not meet work-related requirements (e.g., jobseeking). Tell your work coach if you cannot meet commitments due to homelessness.
If your rent is more than the Local Housing Allowance rate, Universal Credit will not cover the full amount. You will need to make up the difference.
Do not assume your rent is being paid. Check your journal and bank account to make sure the housing element is going to your landlord.

Universal Credit includes a housing element to help pay your rent. The amount depends on your income, savings, and local rent levels (Local Housing Allowance).
Universal Credit is paid monthly in arrears, meaning you will not get paid for 5 weeks after you apply. Plan for this gap.
By default, the housing element is paid to you, not your landlord. You are expected to pay your rent yourself.
If you are struggling to manage money or are in rent arrears, you can ask for the housing element to be paid directly to your landlord (an "Alternative Payment Arrangement").

You have the right to apply for Universal Credit if you are on a low income or unemployed, regardless of your housing situation.
You can request an advance payment to cover the 5-week wait. This is a loan you pay back over 12 months.
You can request an Alternative Payment Arrangement if you are in rent arrears (8 weeks or more) or cannot manage your money due to a vulnerability.