Housing Benefit Increases This Month

HOUSING BENEFIT - Tenants in the UK will receive an increase in Housing Benefit payments from April 1st.

The maximum amount of Housing Benefit payable is: 100% of your eligible rent (after any ineligible service charges) If you are not working, your maximum housing benefit will be restricted so that the most you can receive in all benefits paid will be £500 per week for a couple or family or £350 for a single person. 

The freeze on Local Housing Allowance rates that has been in place since 2016 was lifted by the Minister for Welfare Delivery Will Quince MP on January 13, 2020.

And that means these rates will rise by 1.7 per cent in line with inflation, from April.

Local Housing Allowance rates are calculated from the average rents in any given area and are used to determine the level of Housing Benefit awarded to those renting from private landlords.

In addition, Local Housing Allowance rates will be increased to the 30th percentile of market rents as part of measures to help claimants during the coronavirus pandemic.

This will apply to all private renters who are new or existing Universal Credit housing element claimants, and to existing Housing Benefit claimants.

How much is the increase?

There are around 1.4 million people in the private rental sector receiving Local Housing Allowance, and this change will provide an average of around £10 extra a month to affected households in the private rented sector.

We have included the rate as it was since April 2019 and then the rate as it will be from April 2020, with weekly and monthly equivalents:

Cat A

A dwelling where the tenant has exclusive use of only one bedroom with shared use of other facilities.

April 2019 rate = £57.34 a week; calendar monthly equivalent £249.16

April 2020 rate = £67 a week; calendar monthly equivalent £291.13

Cat B

A dwelling where the tenant has exclusive use of only one bedroom with exclusive use of other facilities.

April 2019 rate = £101.84 a week; calendar monthly equivalent £442.52

April 2020 rate = £120.82 a week; calendar monthly equivalent £524.99

Cat C

A dwelling where the tenant has the use of two bedrooms.

April 2019 rate = £127.62 a week; calendar monthly equivalent £554.54

April 2020 rate = £143.84 a week; calendar monthly equivalent £625.02

Cat D

A dwelling where the tenant has the use of three bedrooms.

April 2019 rate = £135.96 a week; calendar monthly equivalent £590.78

April 2020 rate = £155.34 a week; calendar monthly equivalent £674.99

Cat E

A dwelling where the tenant has the use of four bedrooms.

April 2019 rate = £173.41 a week; calendar monthly equivalent £753.51

April 2020 rate = £195.62 a week; calendar monthly equivalent £850.02

Image: Will Quince MP.

The Minister for Welfare Delivery, Will Quince, said: "This Government is levelling up opportunity across the UK, and this will be a welcome increase for around 900,000 people as we provide more money to help pay for housing.

"We are committed to tackling all forms of homelessness - ending the freeze on housing benefits is just one part of achieving this.

"We have announced an additional £263 million to help councils provide better support to homeless people, and importantly, prevent people from becoming homeless in the first place.

"We will continue to work with the Ministry for Housing, Communities and Local Government, and others across government, to find ways to support the cost of living in the rented sector."

What do people need to do to receive the increase?

Payments will increase automatically – they do not have to apply to receive the extra cash and should see a change in their housing payments after April 1.

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