Extra help to pay rent after local housing allowance decision | Personal Finance | Finance

Renters nationwide may soon find it increasingly difficult to afford their accommodation. With rent prices on the rise and local housing allowance rates to be frozen yet again for 2025/26, many tenants will be seeking ways to manage their expenses.

However, depending on individual circumstances, some may be eligible for additional support from the government and local councils. This can come in the form of benefits or through schemes specifically designed to aid the most vulnerable.

Here’s a guide to the payments you could claim to help with your rent. It comes as it was announced at the Budget that the Local Housing Allowance (LHA) – which decides the maximum amount of housing benefit for those renting from private landlords – will remain at the same level until 2026.

Discretionary housing payments

Discretionary Housing Payments (DHPs) offer financial assistance to those finding it hard to meet rent or housing costs. If you’re currently receiving either Housing Benefit or the housing element of Universal Credit and need extra funds to maintain your home, a DHP could be an option.

This discretionary payment can help cover a shortfall in rent, pay for rent deposits, or fund advance rent if you’re relocating. Applications should be made to your local council.

Household Support Fund

The Government has boosted this fund by an additional £421million, which is allocated to local authorities across England to help those most in need with rent arrears and other challenges. The fund will be accessible from October 1, 2024, to March 31, 2025.

Councils across England are given the responsibility of deciding how best to utilise their allocated funds, using local knowledge and engaging directly with community members. The amount each council is given is based on the size and needs of its population.

For example, Birmingham City Council has previously used these funds to offer grants of up to £200 to assist households with food and energy expenses. In Plymouth, eligible residents could receive a maximum of £740 in vouchers.

Residents can find out how much their area was awarded at GOV.UK and can check their council’s website or call their office to discover what local support is available through the fund.

Housing benefit

Housing benefit can provide additional financial assistance for rent if you’re unemployed, on a low income, or claiming benefits. Although Housing Benefit is being phased out and replaced by Universal Credit, new claims can still be made if you’ve reached State Pension age or are living in supported, sheltered, or temporary housing.

However, you won’t be able to make a claim if any of the following apply to you:

• your savings are over £16,000 – unless you get Guarantee Credit of Pension Credit
• you’re paying a mortgage on your own home – you may be able to get Support for Mortgage Interest (SMI)
• you live in the home of a close relative
• you’re already claiming Universal Credit (unless you’re in temporary or supported housing)
• you live with your partner and they are already claiming Housing Benefit
• you’re a full-time student
• you’re residing in the UK as a European Economic Area (EEA) jobseeker
• you’re an asylum seeker or sponsored to be in the UK
• you’re subject to immigration control and your granted leave states that you cannot claim public funds
• you’re a Crown Tenant
• you’ve reached State Pension age but your live-in partner has not – unless you had an existing claim as a couple before 15 May 2019

Universal Credit

You can claim help towards rent through Universal Credit if you’re renting from a private landlord, a local authority, or housing association. The amount you receive will depend on the size of your household, your age, and the area you live in.

If you’re behind on your rental payments, money can be sent directly to your landlord through an alternative payment arrangement (APA). You must apply for this through your workcoach or your landlord can make an application on your behalf.

Full details of how Universal Credit can help pay rent can be found here.