Moving from housing benefit to universal credit (UC)

Most working age people cannot make a new claim for housing benefit.

You usually have to apply for universal credit (UC) instead if you need help with rent.

How universal credit helps with rent

UC has a housing element to help with rent.

Your housing element is:

• paid monthly as part of your UC

• worked out in a similar way to housing benefit

It is usually paid into your bank account and you have to pay the full rent to your landlord.

Find out when your housing element can be paid direct to your landlord.

When you need to move to universal credit

You can continue to get housing benefit unless:

• the DWP move you to UC

• you choose to claim UC

• your housing benefit ends because your situation changes

If the DWP move you to universal credit

This process is called 'managed migration'.

You will get a letter from the DWP called a 'migration notice'.

You must apply for UC to replace your:

• tax credits

• housing benefit

• other 'legacy benefits'

Other legacy benefits are income support, income based JSA and income related ESA.

The DWP want to move most working age people to UC by the end of 2024. Most people who get housing benefit will get a migration notice by August 2024.

If you get income related ESA, you will probably get a migration notice between September 2024 and December 2025.

Transitional protection so you do not lose money

Transitional protection is for people who get more on tax credits or legacy benefits than they would normally get on UC.

You only get transitional protection if you apply for UC by the date in your migration notice.

It means you get a top up payment as part of your monthly UC payment so you do not lose money when you're moved onto UC.

Some changes can end your transitional protection. For example:

• a partner moves in or out

• your earnings drop below a set amount 3 months in a row

Find out more about transitional protection on GOV.UK

Choosing to switch to universal credit

Some people are better off on UC.

It depends on your situation and if you get other benefits.

You may have to meet different conditions to get UC.

You do not get transitional protection if you choose to move to UC. The money you get could go up or down.

Check how much you could get on UC with a benefits calculator.

What happens if you apply for universal credit?

These benefits and tax credits stop when you apply for UC:

• housing benefit

• income support

• JSA (income based)

• ESA (income related)

• child and working tax credits

Tax credits end the day before your UC claim starts but you might get an overpayment. This has to be paid back through your future UC payments.

You cannot usually make a new claim for tax credits or legacy benefits after they stop.

Changes that end your housing benefit

Some changes mean you have to apply for UC if you need help with rent.

For example, your housing benefit stops if:

• you move to a different council area

• your partner moves out and the housing benefit is in their name

• your partner moves in and already gets UC - you need to claim UC as a couple

Moving to a different council area

You usually have to apply for UC if you need help with rent in a new council area.

You can only make a new claim for housing benefit if you're:

• staying in a refuge, hostel, supported or temporary housing

• pension age - your partner must also be pension age if you live together

Your partner moves out

You can continue to get housing benefit if the claim is in your name when you separate. Report the change to the council.

Find your council’s housing benefit office on GOV.UK

You cannot make a new claim for housing benefit if the claim is in your ex partner's name, unless you're pension age.

Any joint claim for tax credits also ends if you separate.

Your partner moves in

You will usually need to claim UC as a couple. Tax credits end if you move in together.

You can still get housing benefit if you are both pension age.

Your housing benefit and other legacy benefits will also end if your partner:

• gets UC already

• earns too much to get benefits

Changes that could mean you're better off on universal credit

Some changes do not end your housing benefit but could mean you are better off on UC.

For example, if:

• you have a baby and cannot get tax credits

• your youngest child turns 5 and you can no longer get income support

Having children

You might be better off on UC if you cannot make a new claim for child tax credit. You can only makes a new claim for tax credits if you already get child tax credit or working tax credit.

Youngest child turns 5

You usually need to move to UC when your youngest child turns 5 if you:

• are a single parent

• get housing benefit and income support

This is because your income support stops even though your housing benefit can continue.

You can keep claiming housing benefit and income support if you're a full time carer for someone who is disabled.

Changes to your working hours

The number of hours you work can affect working tax credit and other legacy benefits.

You will usually be better off on UC if:

• your hours drop and you no longer qualify for working tax credit

• you start working 16 hours or more a week, and you do not already get tax credits