If you’re getting benefits and have a significant change in your circumstances – like a new relationship, job or a child leaves home – it might mean your payments go down. Find out what actions you can take.

What to do if the housing element of your Universal Credit payment is reduced

If the housing element of your Universal Credit payment has been cut – perhaps because of a spare bedroom – you might be worried about falling behind with your rent.

Contact your landlord

If you’re worried about finding the money to pay your rent – talk to your landlord to see whether there are any options available to you.

Do you rent a social housing property? Your council or housing association might talk to you about transferring to a smaller home if any are available. They can advise you on whether any extra financial help might be available to you.

Claim a Discretionary Housing Payment from your council

You might be able to apply to your council to help top up the housing element of your Universal Credit payment in the short term. This is called a Discretionary Housing Payment and is available to people who are facing a shortfall between their benefits and housing costs.

Contact your local council to apply for a Discretionary Housing Payment.

Consider getting a lodger

Renting out your spare room might be a possibility.

If you do decide to go down this route, there are a few things you need to know:

• Having a lodger would mean you’re no longer considered as having a spare room when it comes to assessing your Universal Credit.
• If you’re getting Universal Credit, any money you get from sub-tenants and lodgers under the rent-a-room scheme will not be counted as income up to the tax-free allowance of £7,500.
• You’ll have to check your tenancy agreement allows you to sublet a room.
• Your contents insurance might not be valid if you take in a lodger. Make sure you check with your insurer that you’re still covered.

Act quickly if you have rent arrears

If you’re already behind with your rent, it’s important to speak to your landlord straight away.

You might be able to agree with them where you pay them the money you owe, bit by bit.

• If you’re struggling to pay your rent, you can get free advice from Shelter.
• Or you can talk to someone on Citizens Advice
• If you live in Northern Ireland, get advice on Housing Advice NI.

Council Tax

Local councils have their own Council Tax Reduction Schemes.

In some areas, you won’t have to pay anything towards your Council Tax bill. While in others, you might have to pay a percentage of it.

Check if your bill is correct

It’s worth checking your council is charging you the correct amount of Council Tax.

Make sure your home has been put in the right band, and check whether you qualify for any exemptions or discounts.

Ask your council to spread the payments over 12 months

You can choose to spread your payments over 12 months instead of 10. Contact your local council and ask them to set up monthly payments.

Claim a Discretionary Housing Payment to help with your Council Tax

You might be able to apply to your council for a Discretionary Housing Payment to help with your Council Tax payments.

If your benefit has been cut because of a sanction

If your benefits have been sanctioned, you can:

• check the sanction is correct, and challenge it if not
• apply for a hardship payment from the Jobcentre
• get help with essential costs from your local welfare scheme.

Free debt advice

If you’re worried about falling behind with bills, or keeping up with debt repayments, there’s lots of free, confidential help and advice available.

Help with budgeting

It’s a good idea to look at your household budget. This will help you work out where your money is going and what you might be able to cut back on. 

Look at how much you have to live on

Work out how much money you have coming in. Then list all your outgoings.

Think about how much money you need to pay for the basics.

Remember that bills like your rent or mortgage, Council Tax and gas and electricity should be your top priority.

See if you can make any cutbacks

Is there any way of reducing your expenditure? Are there any bills where you think you might be able to get a better deal?

Our budgeting guides include practical tips and information about how you can reduce your bills.