Yes, Universal Credit (UC) includes a housing cost element that can help eligible claimants pay their rent. This support is designed to assist people who are on low incomes or unemployed, and it can cover all or part of the rent, depending on the claimant’s income, household size, and location.
This part of Universal Credit is intended to cover:
Rent for private or social housing
Eligible service charges
Tenants must provide details of their rent and tenancy agreement when applying.
By default: Rent is paid directly to the claimant as part of their monthly UC payment.
Alternative Payment Arrangements (APA): In some cases, rent can be paid directly to the landlord (e.g. if the tenant is in arrears or considered vulnerable).
If you rent from a private landlord:
You will usually receive the housing element yourself and be expected to pay the rent.
The amount covered is capped by the Local Housing Allowance (LHA) for your area and property size.
If your rent is £950/month and the LHA rate is £800/month, Universal Credit will only cover £800 — the remaining £150 must be paid by you.
If you rent from a housing association or local authority:
UC can cover the full rent (subject to bedroom entitlement rules).
You may still be responsible for service charges that aren't covered.
If you’re in arrears, you or your landlord can request:
APA – Managed Payments to Landlord (MPTL): The Department for Work and Pensions (DWP) pays rent directly to the landlord.
Third-party deductions: A portion of your UC can be used to pay off rent arrears gradually.
At Fraser Bond, we understand that navigating rent payments while on Universal Credit can be confusing. We support tenants by:
Providing documentation to support UC housing cost claims
Assisting with APA requests where appropriate
Liaising with landlords regarding payment arrangements or rent arrears
Advising tenants on their responsibilities and options for staying on top of rent
Universal Credit does pay rent, but the process varies depending on the type of tenancy and the claimant’s personal circumstances. Tenants must budget carefully and communicate openly with landlords or letting agents. Where needed, Fraser Bond is here to help facilitate clear communication and maintain stable tenancies for both landlords and renters.
