Housing costs

For people who rent, the amount for housing costs is worked out in a similar way to the support provided by Housing Benefit under the system in place before the Act came into force. However, the intention is to make payments directly to the claimant as part of the UC, rather than to the landlord, to encourage people to manage their own budgets (see Chapter 6 for more information).

The Benefit Cap on the total amount of benefit means that people may lose some of their Housing Benefit. There is no appeal against this decision. The government says that those affected may have to find the money to make up their rent from other benefit income or consider moving to a cheaper home or area (see page 18).

Housing Benefit for working-age social housing tenants, such as council or housing association accommodation could also be cut if they have more bedrooms than are allowed under the so-called ”bedroom tax” (see page 19).