Extra help to pay rent as local housing allowance to be frozen

Renters across the country may soon face increased struggles to afford their housing. Rent costs have continued to increase after the Budget confirmed local housing allowance rates will be frozen again for 2025/26.

As a result, many renters will be looking for ways to help cover costs in whatever way they can. The allowance, used to decide the maximum amount of housing benefit for those renting from private landlords, will remain at the same level until 2026.

Fortunately, some residents may be able to claim extra support through the government and local authorities, depending on their circumstances. Some payments can be claimed through benefits while some councils are running schemes targeted at the most vulnerable in their area.

Here's a breakdown of the payments you could claim to help pay rent.

Discretionary housing payments

Discretionary Housing Payments (DHPs) provide financial aid to those struggling with rent or housing expenses. If you're currently receiving either Housing Benefit or the housing component of Universal Credit and require extra funds to keep your accommodation, a DHP could be an option.

This discretionary payment can help bridge a gap in rent, cover rent deposits, or pay for advance rent if you're moving to a new address. Applications should be submitted to your local council.

Find out more about applying for DHPs here.

Household Support Fund

The Government has bolstered the fund by an additional £421million, which is distributed to local authorities across England to assist those most in need, including with rent arrears. The fund will be available from October 1, 2024, to March 31, 2025.

Councils in England are tasked with determining the best use of their allocation, drawing on local knowledge and directly engaging with community members. The amount each council receives is determined by the size and needs of its population.

For instance, Birmingham City Council previously used the fund to provide grants of up to £200 to help households with food and energy costs. In Plymouth, eligible residents could receive a maximum of £740 in vouchers.

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

Housing benefit

Housign benefit can provide extra financial help for rent if you are either unemployed, on a low income, or claiming benefits. While Housing benefit is being replaced by Universal Credit, you can make a new claim if you've reached State Pension age or are living in supported, sheltered, or temporary housing.

However, you'll be unable to make a claim if one 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 are 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.