Many people are struggling to keep up with rising rents, leaving them under constant financial pressure that can quickly lead to homelessness if help is not provided. Housing benefits are a vital part of our society’s support system. Here, we explain what Local Housing Allowance (LHA) is, how it works and how much you might receive.
Local Housing Allowance (LHA) is how the housing element of Universal Credit (or pension age housing benefit) is calculated for people who rent privately. It sets the maximum housing support you can get towards your rent in the private sector.
The aim of LHA is to ensure that housing support reflects local rental costs, helping to make private renting more affordable for people on low incomes. In turn, this helps to reduce the risk of homelessness.
To be eligible for support with housing costs, you must be on a low income or be claiming certain other benefits. Your income and savings must be below set limits and you will also need a tenancy agreement or proof of rent payments.
People under state pension age
Most people of working age who are eligible for support with housing costs receive this through Universal Credit. T
his is a single monthly payment that combines a number of older benefits such as Housing Benefit, Jobseeker’s Allowance and Tax Credits into one.
Some people still receive Housing Benefit if they applied before 2019, but this is being phased out by March 2026 and everyone will be moved onto UC.
People over state pension age
If you are over state pension age you can still make a claim for Housing Benefit.
The housing element of Universal Credit is based on the Local Housing Allowance (LHA) rate for your area, or your eligible rent if this is lower.
The total Universal Credit payment you receive may also be affected by:
LHA rates depend on how many bedrooms you need and average rent prices in your area. What you can claim will vary depending on where you live and the size of home you are entitled to.
For private renting, the housing element of Universal Credit you’re provided with aims to cover the cost of rent for houses in the lower end of the private rental market. Specifically, this is the cheapest 30% of properties in your area.
If you are single and under 35, you will usually get the Shared Accommodation Rate (SAR). This rate covers the cost of renting a room in shared housing and is lower than other Local Housing Allowance rates.
Some people, such as those with disabilities or certain health needs, may qualify for a higher rate.
If you’re over state pension age, you may be able to claim Housing Benefit directly from your local council to help pay rent. Your eligibility depends on your income, savings and housing costs. People on a low income can also claim Pension Credit, which can boost your income and help cover the cost of essentials.
If you live with a partner, you can usually make a claim for Housing Benefit if both of you have reached State Pension age.
There are different rules for couples where one partner is over state pension age and the other partner is under it. These couples may need to claim Universal Credit instead. If you’re unsure, speak to your local council or Citizens Advice for support.
Yes, you may be able to claim for the housing element of Universal Credit or Housing Benefit if you rent a room from a friend. You must have a genuine tenancy agreement, evidence of rent payments and the landlord must not be a close family member who lives with you.
If you are under 35, your LHA rate will usually be based on the Shared Accommodation Rate (SAR). If you’re over 35, or exempt from the SAR, your rate will be based on the one-bedroom LHA.
People who have reached State Pension age will normally only receive the SAR if they’re in shared accommodation, unless they have a disability or health need that requires additional support.
A lodger is someone who rents a room in a property where the landlord lives. You may still be able to get the housing element of Universal Credit or Housing Benefit, but only if the landlord is not a close relative living in the same property.
The amount you can get is usually based on the SAR if you’re under 35, or the one-bedroom rate if you’re over 35, or otherwise exempt from the shared rate.
People who have reached state pension age are only eligible for SAR if they live in shared accommodation, unless they have a disability that means they need extra support.
If your Housing Benefits don’t cover your rent, you can apply for a Discretionary Housing Payment (DHP) through your local council.
You should contact your council’s welfare or housing department and explain your situation. You can also ask your landlord for a rent reduction or payment plan, seek advice from a housing adviser or explore alternative, more affordable housing.
If you need further help on LHA and housing benefits, Shelter and Citizens Advice have a range of resources and helpful guides. You can also speak directly to one of their trained advisors, either over the phone or through webchat, to get tailored support for your housing questions.
Visit the GOV.UK website to learn more about LHA and how it’s calculated, and find out if you’re eligible for Universal Credit or Housing Benefit.
Our members can get housing benefit advice from Crisis' Welfare Benefits Specialist Advisors. Members are the people who use our services and get help from Crisis through our Skylight centres.