Universal Credit Housing Element
The housing element of Universal Credit is the part of your monthly Universal Credit payment that is meant to help with rent and some eligible service charges. For private renters, the maximum usually depends on the Local Housing Allowance (LHA) rate for your area and household size. You may have to top up from your other income if your actual rent is higher than the LHA.
The housing element is normally paid to you as part of your single monthly Universal Credit payment and you are expected to pay the landlord yourself. In some situations, for example if you have rent arrears or difficulty budgeting it can be paid directly to your landlord as a “managed payment to landlord”.
Under the Renters’ Rights Act 2025, landlords and agents must not refuse an applicant simply because they receive the housing element of Universal Credit, and mortgage or insurance clauses banning “DSS tenants” no longer have legal effect. Discrimination can be challenged through the local authority or redress schemes. The Act also provides that, when a landlord relies on rent arrears to seek possession, arrears that exist only because a tenant has not yet received their Universal Credit payment should be ignored, offering extra protection to renters on benefits.
