Comparison between HB & UC Housing Element
Rule
Housing Benefit
Universal Credit
1
Claims, payments & changes
1.1
Couples - who claims?
The couple must decide who will be the claimant &
who will be the partner. The choice can affect the
amount of HB entitlement in ESA cases.
The couple make a joint claim for UC.
1.2
Backdating – Maximum
Currently 6 months, where good cause shown for not
claiming earlier (but only 4 weeks from April 2016)
1 month, where good cause shown.
1.3
Entitlement start date
No waiting days.
7 waiting days before entitlement starts (some
exceptions to this for vulnerable cases).
HB entitlement start from Monday after claim made
(or week claim made if that is the same week liability
starts).
1st payment occurring 6-7 weeks after claim made.
Thereafter payment monthly in arrears.
Claims kept open, if maintained, through periods of nil
entitlement for up to 6 months, within which time the
waiting period does not have to be served again.
1.4
Assessment periods
Weekly assessment.
Monthly assessment.
Entitlement is based on the claimant/families
circumstances in each individual week. Entitlement
can change from week to week if circumstances
change.
Each claim is allocated a regular monthly “Assessment
Period”. The first period starts on their 1st day of UC
entitlement and ends 1 month later. Subsequent
assessment periods start and end on the same day of
the month as established by the 1st period.
Entitlement is based on the claimant’s circumstances as
they stand on the last day of their monthly “Assessment
Period” and the wages that they have received during
that assessment period.
Entitlement will only vary from month to month even if
circumstances change more frequently.
1.5
Change in circumstances
Generally any change affects HB from the Monday
after the change happens (but change in rent may
be from the date of actual change).
Wages are averaged over a representative period
(generally 2 months or 5 weeks if paid weekly).
Change takes effect from the 1st day of the applicant’s
monthly assessment period.
1) Wages taken into account are actual wage
received in that month’s assessment period.
2) Otherwise, amount paid is based on
circumstances as they stand on the last day of
their monthly assessment period. Changes that
occurred in the month but are no longer in place
on the last day of the assessment period are
ignored.
1.6
Periods of nil entitlement
because income exceeds
entitlement
New claim needs to be made after a period of nil
entitlement
No new claim is needed within a 6 month period of nil
entitlement provided the claimants maintain their claim.
Otherwise the claim will cease and they will have to wait
seven days upon starting a new claim.
1.7
Notifications of
entitlement
Letter issued when benefit first assessed and
whenever the entitlement changes, e.g. because of a
change in circumstances
Full letter issued when claim first assessed giving
details of allowances and income used.

Monthly in arrears to the claimant unless an alternative
payment arrangement is deemed to be necessary to
help the person budget.
1.8
Payment frequency


1.9
Payment to landlord
HB for Council housing is paid weekly in advance
to the Council
HB for private tenancies including to social
landlords is paid 2 weeks in arrears to the
claimant.
Where payment is made to a private landlord
(including social housing landlords) payment is
made 4 weeks in arrears.
Monthly notification then by e mail giving top line
information.
HB for Local Authority tenants is always paid to the
landlord (ie the LA)
General rule is that the Housing Element (HE) of UC will
be paid to the claimant, including in LA tenancy cases.
In all other cases, payment to landlords is split into
situations where it must be paid to the landlord and
where it may be paid to the landlord.
There are no situations where the HE must be paid to
the landlord.
Compulsory situations are where,
 there are 8 weeks rent arrears
 a deduction is being made from IS, JSA or ESA
for rent arrears
The situations where the HE may be paid to the
landlord, through an Alternative Payment Arrangement
(APA) are similar to the types of situations outlined in
the original LHA safeguarding vulnerable cases
guidance. The DWP advise that they will only consider
an APA for those claimants who cannot manage the
2
Needs Allowance
2.1
Working out the maximum
award
May includes
 on request (social landlords only)
 In cases where the claimant is unlikely to pay
their rent
 To secure or maintain a tenancy.
single monthly payment and as a result there is a risk of
financial harm to the claimant and/or their family.
Set amounts called “Personal Allowances” for day to
day living expenditure. The amount depends on age,
if they are part of a couple and number of children.
Premiums are awarded for additional needs, for
example due to disability or caring.
Set amounts called Standard Allowance for day to day
living expenditure. The amount depends on age and if
they are part of a couple. “Elements” are added for each
child, child care charges, and other additional needs for
example due to disability or caring. There is also a
Housing Cost Element that replaces Housing Benefit.
The Personal Allowance and premiums added
together give the “Applicable Amount”.
If the Applicable Amount is more than or the same
as their income then maximum HB will be awarded.
If income is higher than the Applicable Amount, then
Housing Benefit entitlement will be reduced.
In the case of rent arrears, Personal Budgeting Support
will be considered in the first instance and where an
APA is agreed, with a view to the APA ending.
The Standard Allowance & Elements added together
establish the “maximum UC award”.
The maximum UC award may then be reduced by any
other income and capital that the claimant/ couple have
coming in. See section 3 for treatment of income and
capital.
3
Treatment of Income and Capital
3.1
Income from lodgers
£20 a week disregarded. The rest is taken into
account.
Disregarded
3.2
Child Benefit
Disregarded
Disregarded
Earned income (wages)
Fixed weekly disregard from £5 pw to £42.10
Depending on household details (eg, single, lone
parent, disabled couple) and hours worked.
Work allowance depending on household details and
whether UC includes a housing element. Calculated
monthly. Weekly equivalent ranges from
(Reducing to nil from April 2016 for childless people & to
£44.31 weekly for other people with Housing Costs).
3.3
Self Employed earnings
Annual assessment unless there is a significant
change. Income taken into account is based on
income declared.
Accounts to be provided monthly. Assumed income
taken into account after 12 months of Minimum wage x
number of hours they are expected to work.
3.4
DLA/PIP
Disregarded
Disregarded
3.5
Taper
65% - For every £1.00 a person/family has in income
over the Applicable Amount they are expected to pay
£0.65 in rent
65% for earned income only - Every £1 a person/family
has in earned income over their UC Maximum Allowance
reduces their UC entitlement by £0.65.
Unearned income (after any disregards) reduces the UC
Maximum Allowance £1 for £1.
3.6
Treatment of
savings/capital
4
Eligible Rent
4.1
Calculation of rent



Must have capital/savings of less than £16,000.
First £6,000 disregarded.
A notional income is assumed on any capital
between £6,000 and £16,000 a rate of £1, per
£250 or part of £250. Maximum notional tariff
income is £40 a week.
Same as for Housing Benefit. However the income from
capital is included as unearned income and attracts the
100% taper (as opposed to the 65% taper that earnings
attracts).
Rent not due to be paid weekly is converted to a
weekly amount.
Rent not due to be paid monthly is converted to a
monthly amount.
Monthly rents are converted to a weekly amount by
multiplying by 12 and dividing by 52
Weekly payments are multiplied by 52 and divided by
12.
4 weekly are multiplied by 13 and divided by 12.
Where the tenancy agreement includes one or more
rent free periods see 4.2.
4.2
Rent Free periods
The rent due each week forms the basis of the
calculation and no HB is actually paid during the
rent free weeks.
Monthly rent calculated by totalling up amount due in a
year and dividing by 12. The resulting Housing Element
is paid equally over the year and there are no gaps in
payment.
4.3
Spare bedroom restriction
– Social Housing
Restriction on rent payable if tenant deemed to be
over accommodated.
Rules for HB & UC are generally the same but with the
following differences;
If one member of a couple is over pension age then
the couple are not affected.
 Both members of a couple need to be over pension
age for them to not be affected.
 A bedroom room is allowed for each adult non
dependant even if they are in a couple.
 No bedroom is allowed for a lodger (but see 3.1).
Housing Benefit is restricted to the LHA for the
area. The LHA that applies is dependent on the
The Housing Element of UC is calculated in the same
way as HB – ie by reference to the LHA and size of
household. The number of bedrooms allowed has
4.4
Local Housing Allowance
(LHA)– Private tenants
size of the household.
changed to;
 A bedroom room is allowed for each adult non
dependant even if they are in a couple.
 No bedroom is allowed for a lodger (but see 3.1).
4.5
Joint Tenants
Where the tenants is jointly liable with someone
other than their partner, the LA establishes the
claimants “share” of the rent, eg, ½, and HB is
calculated using this share.
As with HB, the claimant’s “share” of the rent is used to
calculate the Housing Element.
The amount payable is then restricted to the
appropriate LHA rate for that household or if in
social housing a spare bedroom deduction can be
applied.
The amount payable is then restricted to the appropriate
LHA rate for the claimants household or a spare
bedroom deduction applied if appropriate by reference
to the number of bedrooms needed by the claimant’s
benefit unit (household). The bedroom needs of the joint
tenant and their family are not included.
Where a non dependant belongs to one or more of
the joint tenant households (eg joint tenants are 2
brothers and their sister is the non dep), potentially
they could be included in the size criteria / allowed
a bedroom in both benefit units.
Where more than one joint tenant is claiming UC(HE)
then only one benefit unit will be allowed a bedroom for
the non dependant. The same unit will bear any non
dependant deduction (Housing Cost Contribution
(HCC)).
Any non dependant deductions for a shared non
dep are divided across the joint tenant benefit units.
See section 4.10 – Treating as liable, for a possible
remedy where a joint tenant has vacated a property
& is not paying rent.
See section 4.10 – Treating as liable, for a possible
remedy where a joint tenant has vacated a property & is
not paying rent.
4.6
Protection on death
Rent used in the calculation will not be subject to
further size/bedroom criteria restrictions for up to
52 weeks.
Rent used in the calculation will not be subject to further
size/bedroom criteria restrictions for up to 3 months.
4.7
Protection where tenant
could previously afford the
rent
LHA rate or spare bedroom restrictions are delayed
so HB can cover full rent for up to 13 weeks,
providing HB has not been claimed in the last 52
weeks.
No protection. LHA rate or social sector spare bedroom
restriction applies immediately.
4.8
Service charges
Service charges are eligible for HB where;
Similar but not identical to HB. There is a list of eligible
charges that is prescriptive & could mean items that
would have been paid under HB will not be met by UC.
1) payment of the service charge is a condition of
occupying the property,
2) the charge is periodical & is for a service
performed or a facility,
Service charges are eligible where 4 conditions are met
1) the right to occupy the accommodation is
dependent upon the tenant paying service
3) is reasonable, and
4) is not included on the list of charges that are
ineligible. E.g., water charges, charges for
heating, hot water, lighting or cooking, and
payments for food or fuel.
charges,
2) the service charge wholly falls into one or more
of the following categories
A: Maintaining the general standard of the
accommodation
B: Areas of communal use
C: Basic communal services
D: Tenant accommodation-specific charges
3) the costs or charges are reasonable & relate to
services it is reasonable to provide
4) Not specifically excluded. The list of excluded
charges is longer and is not exhaustive. For
example, gardening for individual gardens,
communal social recreational areas, such as
gyms, bars, shops, hairdresser
5) Full information on service charges, including an
exhaustive list of eligible charges is provided by the
DWP at;
https://www.gov.uk/government/uploads/system/uplo
ads/attachment_data/file/380867/universal-creditservice-charges-guidance-landlords.pdf
4.9
Homeless B&B & Short
Term Leased
Accommodation (STLA)
cases
The rent charged (providing it is reasonable) is the
amount used in the HB calculation. The size criteria
(Social Sector or LHA) do not affect the calculation.
However, the amount MK Council can claim back
from the Government (by way of subsidy) for this
HB payment is restricted to the either;
 for non-self-contained or B&B accommodation
£121.15 a week
 STLA (non self-contained) £169.04 a week
 STLA (self-contained)
o 1 bed £169.04
o 2 bed £195.00
o 3 bed £215.77
o 4 bed £278.08
o 5 bed £371.54
Housing costs will be paid via UC and calculated on the
lower of the core rent v appropriate LHA rate.
As at April
A separate management admin payment will be made
to the LA. The structure and method of payment has not
yet been confirmed.
 The claimants weekly HB entitlement if it is
lower
NB/ amounts are for accommodation in the MKC area
and may differ if the temp accommodation is in
another area.
4.10 Treating as liable
4.11 Treating as not liable (when
claimant declares they pay rent)
Treats claimant as if they are liable to pay housing
costs where;
Treats claimant as if they are liable to pay housing costs
where;

the person who's liable to pay the housing
costs isn't paying them

the person who's liable to pay the housing costs
isn't paying them

because of this, they have to pay the
housing costs to carry on living in the home,
and

because of this, they have to pay the housing
costs to carry on living in the home


it is reasonable to treat them as liable
it would be unreasonable for them to make other
arrangements

it’s reasonable to treat them as liable to pay the
housing costs.(In the case of owner-occupier
payments, JC+ can take account of the fact that
the liable person may benefit from this when
deciding what is ‘reasonable’).
Regulation 9 provides for circumstances where a
person may declare they are paying rent, but this
rent is not treated as eligible for Housing Benefit,
for example because the payments are to a close
relative, with whom they reside or the tenancy
appears to have been created to take advantage of
the benefit scheme.
Largely the same as HB with fewer specific exclusions,
such as ex-partner previously owned the
accommodation.
52 week maximum
12 month maximum
4.12 Liable for rent on 2 homes
1. Fear of violence
2. Larger Household (ie cannot Allowable where a family is placed in 2 dwellings by Allowable where placed in 2 dwellings by a provider of
a “Housing Authority”
social housing
3. Move delayed and
overlapping liability due to
adaptations for a disability
Allowed for up to 4 weeks
Allowed for up to 1 month
4. Unavoidable overlap on
Up to 4 weeks from time they moved into new
No similar provision exists
be accommodated in 1 dwelling)
moving house
5. Move delayed while
awaiting Social Fund /
LWP payment
home until liability at old address ended
Allowed for up to 4 weeks, providing a member of
the family is under 5 years old or the benefit
assessment includes a disability premium.
No similar provision exists
4.13 Temporary absence from home
1. Outside of the UK
13 weeks providing absence is not expected to
exceed 13 weeks.
1 month
2. In the UK
Generally 13 weeks but up to 12 months if certain
conditions met
6 months (but claimant conditionality conditions must be
met throughout)
3. In hospital
Up to 52 weeks - providing absence is unlikely to
exceed 52 weeks.
6 months
13 weeks
4. Temporary admission to
residential accommodation
to assess if it suits their
needs
6 months
5. In Hospital or care home
when new tenancy starts
No specific rules, so award depends on
interpretation, individual circumstances & case law.
Clarified HB rules. They will be treated as occupying the
accommodation for up to 1 month before they moved in,
providing they have since moved in.
6. Through Fear of violence
Up to 52 weeks
Up to 12 months
7. Prison
Up to 52 weeks if on remand. Otherwise up to 13
weeks providing total term in custody is not
expected to exceed 13 weeks.
Up to 6 months providing term in custody is not
expected to extend beyond 6 months.
8. Due to essential repairs
Assumes that there will only be 1 liability so pays
HB on either the normal home or temporary home
but not both. The regulation does not cover
situations where there is a liability on both the
normal and temporary home. Instead the liable for
rent on 2 homes rules need to be considered.
Clarifies the situation where there are 2 liabilities so that
help can be given on 1 home.
Allowed a bedroom for up to 52 weeks
Included in the number of bedrooms needed for up to 6
9. Child in care
Where they are liable for rent on one home only the UC
will be calculated on that rent liability.
Where they are liable for both properties, UC will use
the rent of the normal home.
months
10. At University
4.14 Supported “Exempt”
Accommodation (SEA)/
Specified Accommodation.
Bedroom could be allowed if absence was not
expected to exceed 52 weeks.
Bedroom could be allowed if absence was not expected
to exceed 6 months.
Supported “exempt” accommodation is narrowly
defined and does not include accommodation
where MKC is the landlord, even if care support
and supervision is provided.
The rent cost of “Specified Accommodation”, which
includes SEA will continue to be met through Housing
Benefit although the person will claim UC instead of one
of the existing working age legacy benefits, such as
ESA.
Rent costs and service charges relating to
maintenance of the structure of the premises met
through HB. This often involves in-depth
discussions to separate personal care related costs
from accommodation related costs.
The different subsidy arrangements relating to
these kinds of claim can also result in high costs for
Local Authorities.
Specified accommodation includes:
1. Supported “Exempt” Accommodation
2. Managed accommodation, (excluding LA
accommodation) where the landlord does not
provide or arrange the support but the tenancy is
only granted on the proviso that care, support or
supervision is required and will be provided by
another agency.
3. Refuges (including LA refuges)
4. Hostels, including LA hostels, where care support &
supervision is included
5
Deductions
5.1
Benefit Cap
The benefit cap only reduces the Housing Benefit
payable but does not reduce any other associated
benefit, such as JSA (IB). In effect this means that
although capped, some people will still be receiving
more than the cap threshold in benefits.
The benefit cap rules will reduce the overall benefit
payable to the cap threshold.
5.2
Non Dependants
Seven deduction rates, varying from nil up to
£93.80 pw where a non dep is working 16 hours a
week and has income of £408 gross a week.
Housing Cost contribution of either nil or £68 pcm
(£15.70 a week).
£14.55 a week deduction where non dep is 25 or
over on means tested benefit or UC and not
earning.
No deduction in the following cases;
1. Claimant or partner blind or receives DLA/PIP
care
Nil contribution in the following circumstances;
1. Claimant or partner blind or receives DLA/PIP care
2. Non dep is
 Under 21
 On state pension credit
 Receives DLA care mid/high or PIP daily living
 Receives Carers Allowance
 Responsible for a child under 5

2. Non dep is
5.3
3rd party deductions
A prisoner
Under 25 and on IS, JSA(IB), ESA(IR) which does
not include the support component or the workrelated activity component) or entitled universal
credit where they have no earned income;
There is a HC deduction for each adult non dependant
(regardless if they are in a couple). Note however, that
each member of the couple is allocated a room under
the size criteria – see 4.3.& 4.4).
Non dep couples have one non-dep deduction
between them.
Also see note 4.5 on Joint Tenants
There are no 3rd party deductions from Housing
Benefit or Tax Credits, although they can be made
from JSA(IR) and ESA(IB).
Deductions are made by reference to a priority list of
debts;
No more than 3 deductions can be made.
The maximum that can be deducted is 40% of the UC
standard allowance (exceptions can be made).
 Rent & service charge arrears – 10% to 20% of
standard allowance
 Gas electricity/arrears – 5% of standard allowance
 CTAX arrears – 5% of standard allowance
 Court fines etc. – 5% of standard allowance
 Water charges - 5% of standard allowance
 Child Maintenance - 5% of standard allowance
4.4
Overpaid Housing Benefit
deductions
Housing Benefit overpayments are recovered by
reducing the HB paid or where HB is not in
payment by invoicing the claimant or the
person/company who received the payment (eg,
landlord)

5.5
Sanctions
JSA sanctions do not affect HB entitlement.
However HB is paid to the claimant, there is a risk
that the claimant will use the payment for day to
day living rather than pay their rent
Child and Housing Element are protected so are not
withdrawn. The sanction amount can be up to the value
of the “Standard Allowance” (see 2.1 above).
6
Other
6.1
Uprating
From 1st April or 1st Monday in the tax year
A HB debt can be recovered from UC providing
there are not 3 other debts or deductions being
made that are a higher priority or that the maximum
deductions limit has not been exceeded. Deductions
for HB overpayments are a lower priority than any of
the 3rd party deductions listed above but can be
recovered at 15% of the standard amount (40% if
overpayment is due to fraud)
1st day of the assessment period which falls after 1st
Monday in tax year or where specified after 1st April.
6.2
Discretionary Housing
Payments
Payable in addition to HB where there is a gap Payable where the Housing Element is included in
between the rent liability and HB entitlement and the Universal Credit. Maximum monthly DHP cannot exceed
person needs additional financial assistance.
the total Housing Costs used in the UC calculation.
The information on this document is aimed at people who have some basic knowledge of HB & UC. It has been researched thoroughly and is believed to be accurate at the
time of publication. MKC accepts no liability or responsibility for any inaccuracies but if you do find an error, make any improvements or just find the document useful and
would like to pass it on, please let us know by e-mailing Universal.Credit@milton-keynes.gov.uk. Thank you Anne Jordan – 29/9/15 v3.