How social tenants calculate their housing costs

Your client is a social tenant if their landlord is a council or a registered housing association.

The housing costs element for a social rent normally covers the whole monthly contractual rent and any eligible service charges, but is reduced if there are under-occupancy charges.

The amount might also be reduced if the DWP believes the rent or service charges are unreasonably high.

Reduction for spare bedrooms (bedroom tax)

The DWP reduces the amount of housing element they award if they believe a claimant in social housing is under-occupying their property. A claimant will be under-occupying if the number of bedrooms in the property exceeds the number of bedrooms they are entitled to.

If there is a dispute with the landlord or the DWP about whether or not a particular room in the property counts as a bedroom, you should seek specialist benefits advice.

Where the claimant is under-occupying their home, their housing costs element will be reduced by:

• 14% if the claimant is under-occupying the property by one bedroom

• 25% if the claimant is under-occupying by two or more bedrooms

Cases where bedroom tax does not apply

No reduction for spare bedrooms will be made where the claimant:

• is a joint tenant with someone who is not their partner

• lives in a dwelling adapted under a sanctuary scheme (this has quite complex requirements so seeking further benefits advice is recommended)

• lives in a shared ownership property

Service charges for social tenants

Where your client rents from a social landlord, there are certain eligible service charges that can be paid for by UC housing costs.

To be eligible, service charges must:

• be payable as a condition of occupying the home

• be of a reasonable amount and relate to services or facilities which are reasonable to provide

• fall within a specified category

Find out more about the specified categories in Universal Credit: service charges - guidance for social landlords on the Gov.uk website.

The specified categories include charges for:

• cleaning windows not on the ground floor

• communal facilities, utilities and services

• essential furnishings provided with the accommodation but which remain property of the landlord

• internal and external repair costs in shared ownership properties

The tenant cannot claim for their personal energy and water bills, or for personal care and support.

Service charges and owner-occupiers

There are limited circumstances where an owner-occupier who has been can claiming UC for at least nine months with no earned income can claim the housing costs element for service charges using similar rules to social tenants. You should signpost your client to full benefits advice if they wish to explore this option.

More information on service charges

Professionals can find out more about claiming for eligible service charges under UC on Shelter Legal.