What to Do If Your Universal Credit Doesn’t Cover Your Rent

Looking for options or finding solutions when your Universal Credit doesn’t cover your rent is a situation that many tenants fear: you open your Universal Credit statement and realise it doesn’t even come near paying your rent. Whether it’s an increased rent bill, a lower payment, or just the cold difference between what you need and what you have, the reality can be stressful and overwhelming.

At Find My Move, we understand how housing insecurity can have a knock-on effect on all aspects of your life. That’s why we’ve outlined step by step exactly what to do if your Universal Credit is not paying your rent, including practical measures, financial assistance options, and housing benefit tips to keep you afloat.

Step 1: Understand Why Universal Credit Isn’t Covering Your Rent

Before panicking, bear with me to see what is going on. Let’s say your rent is not covered by your Universal Credit. But it never quite pays the full amount, particularly if:

  • Your rent exceeds your local housing allowance (LHA).
  • You’ve got an unused bedroom (by Bedroom Tax rules).
  • Your benefit has been reduced because of deductions (such as advance repayments or sanctions).

You’re renting privately, where the market rents are typically way beyond what the government considers ‘reasonable’.

Therefore, don’t panic if you’re having trouble paying your DSS rent; there are ways to solve the problem.

Step 2: Speak with Your Landlord ASAP

This may seem uncomfortable, but honesty can be a powerful thing. If you’re late paying rent, you’re legally entitled to eviction. But if they know what’s going on in advance, lots of landlords will cooperate with you instead of against you.

How to express it to your landlord:

  • Suppose your Universal Credit does not cover your rent.
  • Talk openly and honestly about the disparity and your financial situation.
  • Let them understand that you are actively looking for help to bridge the gap.

They may agree to a payment arrangement or grant you an extension while you apply for additional assistance.

Step 3: Apply for a Discretionary Housing Payment (DHP)

If you’re already getting the housing part of Universal Credit or housing benefit assistance, but it’s still not sufficient, you can ask for a Discretionary Housing Payment from your local authority.

What is DHP? It’s additional financial assistance with rent-related costs that your Universal Credit doesn’t cover, and you don’t have to repay it.

You may be able to get it if:

  • You’re threatened with losing your home.
  • You have a disability or long-term illness.
  • You’re fleeing domestic violence.
  • You are subject to the Bedroom Tax or benefit cap.

How to apply:

Visit the website of your local council, look up “Discretionary Housing Payment,” and complete the application. You’ll usually need:

  • Evidence of your income and rent
  • A copy of your Universal Credit award
  • Details about your financial hardship

Step 4: Review Your Budget and Prioritise Rent

When finances are limited, you need to go over your budget very carefully. Rent must always be the priority — failure to pay can result in eviction quicker than most other debts.

Budget tips:

  • Record all income and expenditure.
  • Eliminate non-essential spending for the time being.
  • Call utility companies to inquire about hardship programs or payment options.
  • Look at changing to lower-cost services (mobile, broadband, insurance).

There are plenty of free resources, such as MoneyHelper with online budget planners to get you going.

Step 5: Ask for Additional Financial Assistance for Rent

In addition to DHP, there are other types of assistance you may be eligible for:

  1. Local Welfare Assistance Schemes

Certain councils provide emergency grants for those with difficulty with housing expenses, food, or basic necessities. These differ regionally, so look on your local authority’s website.

  1. Charitable Grants

Some charities will assist with a shortfall in rent if you’re in crisis. Make a search on Turn2us for grants which you may be eligible for, given your situation, job, or health issues.

  1. Crisis Loans and Hardship Funds

These aren’t always well promoted, but in some cases, you might be able to get help with hardship payments or crisis intervention via your Jobcentre if you’ve had sanctions or overpayment deductions applied against your benefits. 

Step 6: Downsize or Move

If your rent is consistently out of reach and you’re experiencing a DSS rent shortfall each month, you might need to think about moving to a lower-cost property, or one that more closely matches your Local Housing Allowance.

  • Advice if searching for a new property:
  • You can use filters like “DSS accepted” or “housing benefit welcome.”
  • Cooperate with lettings agents who handle benefit-friendly rentals.
  • Consult sites like Find My Move for properties that accept tenants on Universal Credit.

Yes, it’s a tough choice. However, a safe, reasonably priced location to live can improve both your financial and emotional well-being.

Step 7: Seek Professional Advice

It’s not necessary for you to manage it alone. There are fantastic organizations that can assist you in navigating the system and ensure that you’re not leaving anything behind that you’re eligible for:

  • Citizens Advice: Regarding DHP claims, housing rights, and welfare issues.
  • Shelter: For emergency housing guidance, particularly if you’re in danger of being evicted.

StepChange, if debt is part of the reason for your housing crisis, they can assist you in managing and consolidating it.

Don’t leave it until you’re in arrears or at risk of eviction. Contacting them early can prevent a bad situation from spiraling out of control.

Summary: Your Action Plan If Universal Credit Doesn’t Cover Rent

Here’s a summary of what to do if your Universal Credit isn’t paying your rent:

  • Understand the shortfall: See what you’re getting vs. what your rent is.
  • Apply for a Discretionary Housing Payment: A safety net for many tenants in your position.
  • Budget carefully: Pay rent first and reduce where you can.
  • Seek additional financial assistance: From councils, charities, or hardship funds.
  • Consider moving: If your current rent is not sustainable in the long run.
  • Seek assistance: Don’t do it on your own; professional advice is free and there for the asking.
  • Your eviction may be postponed or even prevented if you speak with your landlord.

Final Thoughts

At Find My Move, we think that everybody should have a secure, safe place to live, no matter what their income is. If you’re finding it tough to pay rent and dealing with the benefits system seems like climbing a mountain, hear this: there are grants, resources, and people who want to assist you.

Whether you’re seeking housing that takes Universal Credit or require practical assistance in identifying additional financial assistance for rent, we’re here to assist you in the next step, with transparency, empathy, and without judgment.

Browse our listings or contact us today to discover how we can assist you in locating a home that suits your requirements.