If you’re getting benefits and have a significant change in your circumstances – like a new relationship, job or a child leaves home – it might mean your payments go down. Find out what actions you can take.
What to do if the housing element of your Universal Credit payment is reduced
If the housing element of your Universal Credit payment has been cut – perhaps because of a spare bedroom – you might be worried about falling behind with your rent.
Find out more in our guides:
Contact your landlord
If you’re worried about finding the money to pay your rent – talk to your landlord to see whether there are any options available to you.
Do you rent a social housing property? Your council or housing association might talk to you about transferring to a smaller home if any are available. They can advise you on whether any extra financial help might be available to you.
Claim a Discretionary Housing Payment from your council
You might be able to apply to your council to help top up the housing element of your Universal Credit payment in the short term. This is called a Discretionary Housing Payment and is available to people who are facing a shortfall between their benefits and housing costs.
Contact your local council to apply for a Discretionary Housing Payment.
Consider getting a lodger
Renting out your spare room might be a possibility.
If you do decide to go down this route, there are a few things you need to know:
- Having a lodger would mean you’re no longer considered as having a spare room when it comes to assessing your Universal Credit.
- If you’re getting Universal Credit, any money you get from sub-tenants and lodgers under the rent-a-room scheme will not be counted as income up to the tax-free allowance of £7,500.
- You’ll have to check your tenancy agreement allows you to sublet a room.
- Your contents insurance might not be valid if you take in a lodger. Make sure you check with your insurer that you’re still covered.
Find out more in our guide Rent a Room scheme – how it works and tax rules
Act quickly if you have rent arrears
If you’re already behind with your rent, it’s important to speak to your landlord straight away.
You might be able to agree with them where you pay them the money you owe, bit by bit.
- If you’re struggling to pay your rent, you can get free advice fromOpens in a new window Shelter.
- Or you can talk to someoneOpens in a new window on Citizens Advice
- If you live in Northern Ireland, get adviceOpens in a new window on Housing Advice NI.
Use our Benefits calculator
If you’re living on a low income or have had an income shock, use our Benefits calculator to quickly find out what you could be entitled to.
Council Tax
Local councils have their own Council Tax Reduction Schemes.
In some areas, you won’t have to pay anything towards your Council Tax bill. While in others, you might have to pay a percentage of it.
Find out more about your local council’s tax reduction schemeOpens in a new window on GOV.UK
If you live in Northern Ireland, find out more about ratesOpens in a new window on nidirect
Check if your bill is correct
It’s worth checking your council is charging you the correct amount of Council Tax.
Make sure your home has been put in the right band, and check whether you qualify for any exemptions or discounts.
Find out more in our guide Council Tax: what it is, what it costs and how to save money
Ask your council to spread the payments over 12 months
You can choose to spread your payments over 12 months instead of 10. Contact your local council and ask them to set up monthly payments.
Claim a Discretionary Housing Payment to help with your Council Tax
You might be able to apply to your council for a Discretionary Housing Payment to help with your Council Tax payments.
If your benefit has been cut because of a sanction
If your benefits have been sanctioned, you can:
- check the sanction is correct, and challenge it if not
- apply for a hardship payment from the Jobcentre
- get help with essential costs from your local welfare scheme.
Find out more in our guide Benefit sanctions and what to do about them
Free debt advice
If you’re worried about falling behind with bills, or keeping up with debt repayments, there’s lots of free, confidential help and advice available.
Have you missed a payment?
Use our Debt advice locator tool to find free and confidential debt advice online, over the phone or near to where you live.
Help with budgeting
It’s a good idea to look at your household budget. This will help you work out where your money is going and what you might be able to cut back on.
Look at how much you have to live on
Work out how much money you have coming in. Then list all your outgoings.
Think about how much money you need to pay for the basics.
Remember that bills like your rent or mortgage, Council Tax and gas and electricity should be your top priority.
Budget planner
To help you manage your money, try our free and easy-to-use Budget planner.
See if you can make any cutbacks
Is there any way of reducing your expenditure? Are there any bills where you think you might be able to get a better deal?
Our budgeting guides include practical tips and information about how you can reduce your bills.
Join our Facebook group
Join our private Budgeting and Saving Facebook group for money-saving tips and support from a community of savers.
