Housing Benefit migration to Universal Credit under way

Housing Benefit is being replaced by Universal Credit, and the Department for Work and Pensions (DWP) is writing to existing claimants with a migration notice that sets a deadline to apply for Universal Credit¹. New Housing Benefit claims are now limited to people who have reached State Pension age or who live in supported, sheltered or temporary housing¹.

The change affects people of working age who rent and currently receive Housing Benefit. Anyone getting the benefit will receive a letter from the DWP, called a migration notice, giving a deadline to apply for Universal Credit¹. Claimants who do not apply in time might receive less Universal Credit¹. The process of moving claimants across is covered in the guide to moving to Universal Credit from legacy benefits, and the notice itself is explained in what to do if you get a migration notice.

Housing Benefit is paid by local councils to help people pay their rent, and the amount depends on rent, income and capital¹. For working age claimants, savings of £16,000 or more mean no entitlement to Housing Benefit at all, and savings over £6,000 reduce the amount paid¹. For people of pensionable age, the rules differ: those receiving means tested Pension Credit face no upper capital limit, while those who do not have an upper limit of £16,000, with the first £10,000 of capital ignored and income then calculated at £1 for every £500, or part of, up to £16,000¹.

The maximum rent used in the calculation can be reduced for service charges, for other adults in the household who could contribute (non-dependants), or where the home is considered too large for the claimant's needs¹. Certain service charges cannot be paid by Housing Benefit, including meals, personal laundry, personal alarm systems, personal support and care, water rates included in rent for a community landlord, and most fuel charges¹. A benefit cap applies to combined benefit for working age households and includes Housing Benefit, but does not apply to people of pension age¹.

Claimants must report changes in circumstances to the Housing Benefit department of their local council as soon as possible². Changes listed include moving house, someone moving in or out, a change in benefits or tax credits, starting or changing a job, changes to hours or pay, changes in savings or pension, having a baby, a child turning 16 or leaving school, hospital or prison stays, becoming a student, taking in a lodger, subletting, time away from home, and rent charge changes². Failure to report can lead to overpaid benefit having to be repaid, missed entitlement, and in some situations a fine or prosecution². Where a change affects the award, it may take effect immediately or on the Monday after the change took place².

Why it matters for households

Working age renters who claim Housing Benefit will move to Universal Credit, where housing support is paid as part of a single monthly award rather than as Housing Benefit. The deadline in the migration notice is the point at which the household's entitlement can be reduced if no claim is made¹. People who have reached State Pension age, and those in supported, sheltered or temporary housing, can still make a new Housing Benefit claim¹. Savings thresholds continue to determine entitlement, with the £16,000 upper limit applying to working age claimants and to pension age claimants who do not receive means tested Pension Credit¹. The differences between the two systems are set out in Housing Benefit vs Universal Credit housing costs, and protection for those who lose out on migration is covered in transitional protection when moving to Universal Credit.

What happens next

The DWP is issuing migration notices with a deadline to apply for Universal Credit¹. Claimants who receive one are expected to apply by the date given; applying late may mean receiving less Universal Credit¹. No further timetable for the migration has been reported.