Use our 2026 updated Housing Benefit Calculator to estimate your entitlement. This tool handles Local Housing Allowance (LHA) caps for private renters and the "Bedroom Tax" for social housing tenants.
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* This figure assumes full entitlement based on low income. Actual payment may be lower if you have earnings or savings over £6,000.
Housing Benefit is a legacy social security benefit in the United Kingdom designed to help tenants pay their rent. As we move through 2026, the landscape of housing support continues to evolve, primarily driven by the ongoing migration to Universal Credit. For the vast majority of working-age claimants, Housing Benefit has been replaced by the Housing Element of Universal Credit. However, understanding the legacy system remains crucial for pensioners, those in supported accommodation, and those currently still receiving the legacy benefit.
The calculation of housing support, whether through legacy Housing Benefit or Universal Credit, relies heavily on complex criteria including Local Housing Allowance (LHA) rates, household composition, income, and specific tenancy types. This comprehensive guide and calculator are designed to help you navigate these complexities.
In 2026, new claims for Housing Benefit are significantly restricted. You can generally only make a new claim if:
If you do not fall into these categories, you will likely need to apply for Universal Credit to receive help with your housing costs. The "Housing Element" of Universal Credit is calculated using very similar rules to Housing Benefit, particularly regarding the Local Housing Allowance caps.
For private renters, the maximum amount of benefit you can receive is capped by the Local Housing Allowance (LHA) rates. These rates are set by the Valuation Office Agency (VOA) and are determined by the area in which you live—known as the Broad Rental Market Area (BRMA)—and the size of the property you are eligible for.
The 30th Percentile Rule: LHA rates are typically set at the 30th percentile of local market rents. This means that if you rent in the private sector, the benefit is intended to cover the cost of the cheapest 30% of properties in your area. If your rent is higher than this cap, you must make up the shortfall yourself.
In recent years, LHA rates were frozen, leading to a significant gap between actual rents and the support available. While there have been adjustments to realign rates, tenants in high-cost areas like London or the South East often face significant shortfalls. Our calculator allows you to input the specific LHA rate for your area to see how it caps your potential entitlement.
Your LHA rate is based on the number of bedrooms your household needs, not necessarily the number of bedrooms the property has. Under the 2026 rules, you are allowed one bedroom for:
Single claimants under 35 generally only receive the "Shared Accommodation Rate," which is significantly lower than the one-bedroom rate, assuming they will rent a room in a shared house.
If you rent from a local council or a housing association, LHA rates do not usually apply. Instead, your benefit is based on your actual rent. However, you are subject to the "Removal of the Spare Room Subsidy," widely known as the Bedroom Tax.
This policy reduces your eligible rent if you are deemed to have more bedrooms than you need:
Pension-age claimants are typically exempt from this deduction. Our calculator includes a toggle for social housing tenants to apply these deductions automatically.
A non-dependent is someone who lives with you but is not dependent on you financially, such as an adult son or daughter, or an elderly relative. The government assumes that these adults should contribute towards the household housing costs. Consequently, a deduction is made from your Housing Benefit or Universal Credit housing element.
The rate of deduction in 2026 varies depending on the non-dependent's gross income. There are exceptions where no deduction is made, for example, if the claimant or their partner is blind or receiving certain disability benefits (like the daily living component of PIP).
Housing Benefit is means-tested. This means your income and savings (capital) affect how much you get.
Capital: If you have savings over £16,000, you are generally not eligible for Housing Benefit unless you are on Pension Credit Guarantee Credit. For savings between £6,000 and £16,000, a "tariff income" is assumed—usually £1 per week for every £250 (or part thereof) over £6,000.
Income: If your income is higher than the "applicable amount" (the amount the government says you need to live on), your Housing Benefit is reduced by 65p for every £1 of income above that limit. In Universal Credit, the taper rate is different (currently 55% as of the last major update), applied to net income.
The Benefit Cap is a limit on the total amount of benefit a working-age household can receive. If your total entitlement from various benefits (including Housing Benefit, Child Tax Credit, Jobseeker's Allowance, etc.) exceeds the cap, your Housing Benefit is reduced to bring you under the limit. The cap levels differ inside and outside Greater London.
Certain exemptions apply, such as if you receive Working Tax Credit, have a disability, or receive Carer's Allowance.
The "Move to UC" process is in its final stages in 2026. If you receive a "Migration Notice" letter from the DWP, you must claim Universal Credit by the deadline date, or your legacy benefits (including Housing Benefit) will stop. It is critical not to ignore this correspondence.
Transitional Protection may be available to ensure you are not worse off at the point of transfer, provided you claim by the deadline. This protection erodes over time as benefit rates increase.
If your Housing Benefit or Universal Credit housing element does not cover your full rent—due to LHA caps, the Benefit Cap, or the Bedroom Tax—you can apply to your local council for a Discretionary Housing Payment (DHP). These are extra payments to help with housing costs. They are not guaranteed and are usually awarded for a limited time to help you adjust your circumstances, such as moving to a cheaper property.
If you believe your Housing Benefit has been calculated incorrectly, you have the right to ask for an explanation or a reconsideration. You must usually do this within one month of the decision date. Common grounds for challenge include incorrect income assessment, errors in calculating non-dependent deductions, or incorrect application of the bedroom criteria.
The tool above simplifies the estimation process. By entering your rent and local parameters, you can see the maximum support available before income tapering. Always remember that the final decision rests with your local authority or the DWP.
For the most accurate assessment, gather your tenancy agreement, proof of income, and details of anyone living with you before starting your official application.
Most new working-age claimants cannot apply for Housing Benefit and must apply for the housing element of Universal Credit instead. However, if you have reached State Pension age, or live in specified supported, sheltered, or temporary accommodation, you may still be eligible to make a new claim for Housing Benefit.
The Local Housing Allowance (LHA) is the method used to calculate the maximum amount of housing support a private tenant can receive. It is based on the location of the property (Broad Rental Market Area) and the number of bedrooms your household requires. The rate is generally capped at the 30th percentile of local market rents.
The removal of the spare room subsidy, commonly known as the 'Bedroom Tax', applies to tenants in social housing. If you have one spare bedroom, your eligible rent is reduced by 14%. If you have two or more spare bedrooms, the reduction is 25%. This does not typically apply to pensioners.
Yes. Housing Benefit is a means-tested benefit. Your savings, income, and capital will be assessed. If you have savings over £16,000, you will usually not be eligible, unless you receive Pension Credit Guarantee Credit. Income above a certain threshold will taper away the amount of benefit you receive.
A non-dependent is an adult (usually over 18) living with you who is not your partner. The government expects them to contribute towards the rent, so a fixed amount is deducted from your Housing Benefit, regardless of whether they actually contribute. The amount depends on the non-dependent's income.
The housing element of Universal Credit follows similar rules regarding LHA rates and bedroom entitlement as Housing Benefit. However, it is paid directly to you as part of a single monthly payment, rather than to your landlord (though alternative payment arrangements can sometimes be made). It is also calculated based on a monthly assessment period.
You can check your LHA rate by visiting the Valuation Office Agency (VOA) website or your local council's website. You will need to know your postcode and the number of bedrooms your household is entitled to under the benefit rules.