Calculating housing costs element for renters
The rules for calculating the housing costs element for renters are set out in Regulation 26 and Schedule 4 to the Universal Credit Regulations 2013 (SI.No.376/2013).
NB: See below for equivalent legislation in Northern Ireland.
Amount of housing costs element |
Regulation 26 of SI.No.376/2013 |
Sets out the general rules for the amount of housing costs element for renters including those that have shared ownership. |
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Relevant payments |
Paragraph 3 of schedule 4 to SI.No.376/2013 |
Sets out what rent and service charges can be taken account of. |
Under 18 care leavers |
Paragraph 4 of schedule 4 to SI.No.376/2013 |
Sets out that 16 or 17 year old care leavers are prevented from establishing an entitlement to a housing costs element. |
Monthly calculation |
Paragraph 7 of schedule 4 to SI.No.376/2013 |
Provides for the averaging of payments over a calendar month. |
Two homes |
Paragraphs 17 to 19 of schedule 4 to SI.No.376/2013 |
Set out the rules for the calculation of housing costs element involving two homes. |
Private sector rent calculations |
Paragraphs 20 to 29 of schedule 4 to SI.No.376/2013 |
Set out the method for calculating private sector rent including reference to ‘core rent’, ‘cap rent’, local housing allowance rates including the shared accommodation rate and exceptions from it. |
| Articles 3 and 4 of SI.No.382/2013 |
Set out requirements for rent officers to make determinations relating to local housing allowance, which are used in calculating entitlement to the housing costs element of universal credit for tenants renting in the private sector and those in temporary accommodation. |
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Calculation of social sector rent |
Paragraphs 30 to 36 of schedule 4 to SI.No.376/2013 |
Set out the method for calculating social sector rent.
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Deciding housings costs on incomplete evidence |
Regulation 39(4) of SI.No.381/2013 |
Sets out the rules for assessing housing costs if information or evidence is not available. |
See also the universalcreditinfo issues relating to the bedroom tax and housing cost contribution.
In Northern Ireland, SR.No.216/2016 makes provisions that are largely equivalent to those in Great Britain.
Further explanation of the legislation is set out in guidance. Please note, however, guidance is not binding and cannot override the legislation.
Advice for decision making |
Sets out general guidance about the housing costs element. |
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Advice for decision making |
Sets out guidance about the housing costs element for renters. |
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DWP guidance from parliament.uk |
Sets out guidance to DWP staff on eligibility rules for housing costs in the private rented sector. |
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DWP guidance from parliament.uk |
Sets out guidance to DWP staff on when payments can be made on two homes. |
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DWP guidance from parliament.uk |
Calculating rent as a monthly amount and rent free weeks in Social Rented Sector |
Sets out guidance to DWP staff on the calculation of rent charges in the social rented sector. |
Gov.uk |
Sets out the legal definition of service charge payments, lists which are eligible and clarifies how to apportion them. It also gives examples of ineligible service charges. |
Case law provides further interpretation of the legislation and establishes legal precedent.
High Court |
High Court rules that the formulae for converting weekly rents to a monthly value for the purposes of calculating entitlement are neither irrational nor unlawful. |
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Upper Tribunal |
Definition of non-dependant for universal credit housing costs element and application of the ‘person normally lives in the accommodation with the renter’ test in case where an adult child lives at home part of the time and at university part of the time |