Help with monthly rent on a low income

For most households on a low income in the UK, rent is the biggest bill by far, and for private renters it can swallow well over a third of what comes in. It arrives every month whether or not wages, benefits or a pension have kept pace. When housing support does not cover the full amount, the gap comes out of money meant for food and energy. The aim is not to scrape together one month's payment, but to make the rent affordable over time.

This guide deals with ongoing rent: making sure you receive all the housing support you are entitled to, understanding why there may be a shortfall, topping it up, organising payments around your budget and lowering the rent burden in the longer term. If you are already behind, read our page on dealing with rent arrears; if your landlord has started possession action, go straight to help to stop an eviction.

Make sure you are claiming the right housing support

Most working-age tenants on a low income get help with rent through the housing element of Universal Credit. It is not only for people out of work: you can receive it while working part-time, on zero-hours contracts or on a low wage. People over State Pension age, and those in some supported or temporary accommodation, claim Housing Benefit from the council instead.

Common reasons for receiving less than you should:

• a rent increase not reported through your Universal Credit online journal;
• the wrong number of bedrooms in your assessment, for example when a child reaches the age to need their own room or a carer stays overnight;
• a partner, child or disability not correctly reflected in the award;
• never claiming because you work and assume you would not qualify;
• not applying for Council Tax Reduction, which is separate from Universal Credit and claimed from the council.

A free benefits check from Citizens Advice, a local welfare rights service or an online calculator such as Turn2us or Entitledto can confirm what you should get. If a decision looks wrong, you can ask for a mandatory reconsideration.

Why the help may not cover the full rent

Knowing which rule causes your shortfall tells you which exemption or help to ask for:

• Local Housing Allowance (LHA): for private renters, support is limited by the LHA rate for your area and the number of bedrooms your household is allowed. If the rent is higher, you pay the difference.
• Shared accommodation rate: single people under 35 are usually limited to it, with exceptions such as some care leavers and people who have lived in homeless hostels.
• Under-occupancy deduction (often called the bedroom tax) for working-age social tenants with a spare bedroom.
• The benefit cap, which limits total benefits for some households not working enough hours.
• Non-dependant deductions when an adult son, daughter or relative lives with you.
• Ineligible service charges, such as some heating or water charges included in the rent.

A benefit adviser can check whether an exemption applies, for instance for some disabled people, carers or households with very young children.

Discretionary Housing Payments and other council help

If your Universal Credit housing costs or Housing Benefit fall short, ask your council for a Discretionary Housing Payment (DHP). It is a top-up, not a loan. DHPs are often awarded for a limited period while you increase your income, find a cheaper home or wait for a change in circumstances, and councils can also use them for a deposit or rent in advance on a move. Awards are not guaranteed, so include a clear budget and explain what you are doing to improve things, such as looking for more hours or applying for social housing. In Scotland, councils use DHPs to cover the bedroom tax in full for eligible tenants. Council crisis support is organised differently in each nation and has been reorganised in England, so ask your council how to apply now.

Making payments work with your budget

• Direct payment to the landlord: Universal Credit is normally paid to you monthly, but if budgeting is difficult you can ask for an alternative payment arrangement so the housing element goes straight to your landlord. In Scotland you can choose this, and twice-monthly payments, through Scottish Choices.
• Align the dates: ask your landlord to move the rent date to just after your benefit or wage arrives. Many agree.
• Pay rent first: set up a standing order for the day money lands, or keep rent in a separate pot or budgeting account.
• Speak up early: if a month will be short, tell the landlord before the due date. Social landlords usually have a tenancy sustainment or money advice team.

When the rent goes up

Rent increases are one of the most common reasons an affordable home becomes unaffordable. In England, the Renters' Rights Act is changing private renting rules in stages: increases are expected to be made once a year through a formal notice that you can challenge at a tribunal if you think it is above the market rate. Scotland, Wales and Northern Ireland have their own rules. Get advice before agreeing to an increase, from Shelter in England and Scotland, Shelter Cymru or Housing Rights in Northern Ireland, and tell Universal Credit or Housing Benefit about the new amount as soon as it takes effect.

Lowering the rent burden in the longer term

• Join the social housing register. Council and housing association rents are usually much lower than private rents. Waiting lists can be long, so apply early and update your application when circumstances change. Social tenants can look at a transfer or mutual exchange.
• Consider a cheaper or smaller home. Moving has its own costs; our pages on help with moving costs and help with a rental deposit explain what support exists.
• Raise household income. A full benefits check may reveal childcare support in Universal Credit, Carer's Allowance or disability benefits.
• Take in a lodger only if your tenancy allows it and you have checked the effect on benefits.
• Talk to your landlord. Some would rather keep a reliable tenant at a modest rent than face a void period.

Why borrowing to pay rent is risky

Paying rent with a credit card, overdraft or payday loan means next month's rent is due while the debt keeps growing. Missed loan repayments can also damage your credit file, which makes renting your next home harder. If there is a genuine one-off gap, the safer options are, in order: a DHP, a Universal Credit advance or Budgeting Advance where available, help from family agreed in writing, and a credit union loan. Our page on Budgeting Loans and other social loans explains how these work. Compare the APR and total amount repayable of any credit, and check the lender is on the FCA register. If you are using credit for everyday bills, contact StepChange, National Debtline or Citizens Advice for free debt advice before taking on more.

Scams around rent and housing help

Watch out for people offering to speed up a benefit claim or DHP for a fee, fake landlords advertising cheap homes and asking for a holding deposit before a viewing, strangers on social media offering to pay your rent in exchange for bank details, and loans advertised to tenants with poor credit. Genuine council and DWP help is free. Check that a letting agent belongs to a redress scheme and never transfer money for a property you have not seen.

Monthly rent checklist

• Check you receive the correct Universal Credit housing element or Housing Benefit.
• Report every rent change straight away.
• Find out which rule causes any shortfall.
• Apply for a Discretionary Housing Payment and Council Tax Reduction.
• Ask about direct payment to your landlord and moving the rent date.
• Get advice on any rent increase before agreeing to it.
• Join the social housing register.
• Get free advice before borrowing to pay rent.