UPDATE: |Extra rent support worth £812 following major benefit freeze News

Frozen rates for one benefit could lead to more financial pressure for some renters

Private renters across the country have been hit a new blow this week after it was confirmed a key benefit will remain frozen while other benefits are going up.

Local Housing Allowance (LHA) provides financial support for people in certain living conditions. while claiming Housing Benefit or the housing element of Universal Credit For example, if you’re under 35 and live alone you can receive a claim to help cover the cost of a single room in a shared house.

The exact amount of financial support a person can get from LHA will vary depending on a person’s living situation and which area they live in as each council may offer a variety of rates and support. Current LHA rates are expected to stay the same until April 2026 after they were increased last year.

The Resolution Foundation claimed that rates being frozen in 2025/26 could leave renters falling short of around £14 a week. However, in areas such as London which have higher rent prices, some could be at risk of losing out on as much as £60 a week.

Despite this, there may be some ways renters could help protect themselves against this shortfall for the following financial year. This can include extra benefits or financial support.

What to do if you’re behind on rent

Citizens Advice suggests that if you’re dealing with rent arrears, it’s crucial to seek advice as soon as possible. This is because your landlord may consider eviction if you’re two months or more behind on your rent.

If you’re a Universal Credit recipient, your landlord can request for some of the payments to be made directly to them.

In such a scenario, you can reach out to the Universal Credit helpline. They might be able to arrange for smaller payments to be made towards rent arrears, allowing you to receive more from your benefit.

However, this could potentially lead to dissatisfaction from the landlord regarding the amount they receive from your Universal Credit, which could result in potential eviction.

You can contact the Universal Credit helpline by dialling 0800 328 5644.

Budgeting Loans

The Department for Work and Pensions (DWP) offers a unique type of loan known as a Budgeting Loan, which could help with rent payments. However, it’s only available to individuals who have been claiming certain benefits for the past six months.

It’s crucial to understand that not all benefits make you eligible for this loan. For instance, those currently on Universal Credit cannot apply.

However, if you’ve switched from Universal Credit to Pension Credit, the time spent claiming the latter will count towards the six-month requirement. Your eligibility may also be affected if you’re already repaying an existing Budgeting Loan or Crisis Loan.

Furthermore, any money received from a Budgeting Loan must be repaid. The amount you can borrow depends on your ability to repay the loan and your savings balance.

The lowest amount that can be borrowed is £100 while some claiming Child Benefit could get up to £812.

One significant advantage of a Budgeting Loan is that it’s interest-free, so you only have to repay the amount you borrowed. Repayments are automatically deducted from your benefits, with the repayment amount based on your income and affordability.

The government recommends that repayments should be completed within two years of receiving the loan. You can apply for a Budgeting Loan on GOV.UK here.

Discretionary Housing Payment

Discretionary Housing Payments (DHPs) provide financial aid to those finding it hard to meet rent or housing costs. If you’re currently receiving either Housing Benefit or the housing component of Universal Credit and need additional funds to maintain your accommodation, a DHP could be an option.

This discretionary payment can help cover a shortfall in rent, pay for rent deposits, or cover advance rent if you’re moving to a new address. Applications should be submitted to your local council.

More information about applying for DHPs can be found here.