How we work out your Housing Benefit

A guide to how we work out your Housing Benefit.

How your weekly entitlement is worked out

Your weekly entitlement is worked out by using the income used in calculation minus total applicable amount.

If the income used in calculation is more than the total applicable amount, your Housing Benefit entitlement will be reduced by a set amount of the difference. For every £1 difference, £0.65 is reduced from your weekly eligible rent.

Benefit Decision Notice

We send Benefit Decision Notice letters to let you know how much Housing Benefit you are entitled to.

How much Housing Benefit you receive

Housing Benefit is means tested and the amount you receive will depend on your personal circumstances. The amount you receive depends on who lives with you, your total income and savings or the total amount your family receives in benefits. The amount can also be affected by the number of bedrooms your family needs.

People who live with you

Adults who live with you, other than your partner, are called non dependants. The Government expects that a non dependant will contribute to your rent and deducts this amount from any Housing Benefit you may receive, whether or not they actually do.

The amount of the deduction is based on the weekly gross income of the non dependant and for 2024 is as follows:

Non dependant deductions 2024/25

Deduction in Housing Benefit

Rules common to IS, JSA, ESA, Pension Credit and HB unless stated otherwise Rates
2024/25		 Rates
2025/26
Non-dependant deductions from HB and from IS, JSA(income based(IB)), ESA(income related (IR)) and Pension Credit, aged 25 and over in receipt of IS and JSA (IB), or any age in receipt of main phase ESA (IR), aged 18 or over and not in remunerative work £19.30 £19.65
Aged 18 or over and in remunerative work    
Gross income: less than £183 £19.30 £19.65
Gross income: £183 to £265.99 £44.40 £45.15
Gross income: £266 to £347.99 £60.95 £62.00
Gross income: £348 to £462.99 £99.65 £101.35
Gross income: £463 to £576.99 £113.50 £115.45
Gross income: £577 and above £124.55 £126.65

For more information on the Government amounts for Pensions and Benefits visit

Benefit and pension rates 2025 to 2026 - GOV.UK

If we have made a decision that you disagree with, you can:

Appeal against a Decision

Request a Backdate

benefits Example 1a

Sarah's Story

Sarah lives in a two-bedroom flat and receives Housing Benefit to help cover her rent. Her adult son, James, moves in with her after finishing university. James has started working full-time and earns £300 per week.

Calculation:

  • James's Income: James earns £300 per week.
  • Applicable Deduction: According to the 2025 rates, the deduction for a non-dependant with a gross weekly income between £266 and £347.99 is £62.00 per week.

Impact on Sarah's Housing Benefit:

  • Before James moved in, Sarah received £150 per week in Housing Benefit.
  • After James moves in, a deduction of £62.00 per week is applied due to James's income.
  • Sarah's new Housing Benefit amount is £150 - £62 = £88 per week.

Explanation:

The deduction reflects the expectation that James, as a working adult, contributes towards the household expenses. This reduces the amount of Housing Benefit Sarah receives.

benefits additional text

How many bedrooms does your family need?

In 2013, the Government introduced new rules that set out the number of bedrooms Housing Benefit will pay for if you rent your home. This is called “removal of the spare room subsidy”, but it is commonly known as “bedroom tax”.

How will this affect me?

It is possible that the amount of Housing Benefit you get to pay your rent could go down. If you are assessed under these rules as having more bedrooms than is necessary for your household you will be considered to be under-occupying that property. If you are under-occupying there will be a reduction in your Housing Benefit of:

  • 14% of the total eligible rent for under-occupancy by one bedroom
  • 25% of the total eligible rent for under-occupancy by two bedrooms or more

If you are thinking of moving you need to consider these changes before you renew or make a new tenancy agreement.

Total amount of benefit received by your family

The benefit cap is a limit on the total amount of certain benefits that most people aged 16 to State Pension age can receive. The cap is designed to ensure that households do not receive more in benefits than the average working household earns.

Benefit Cap Amounts for 2025

  • Couples (with or without children) or single claimants with a child of qualifying age: £22,020 per year (£1,835 per month or £423.46 per week)
  • Single adult households without children: £14,753 per year (£1,229.42 per month or £283.71 per week)

Benefits Affected by the Cap

The cap applies to a range of benefits, including:

  • Universal Credit
  • Housing Benefit
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance (except when in the support group)
  • Jobseeker’s Allowance
  • Income Support
  • Maternity Allowance
  • Bereavement Allowance
  • Widowed Parent’s Allowance

Exemptions

You might not be affected by the benefit cap if you or anyone in your household receives certain benefits, such as:

  • Working Tax Credit
  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Support component of Employment and Support Allowance
  • Carer’s Allowance
benefits Example 2a

Sarah's Story

Family Background

  • Members: Sarah (mother), John (father), and their two children, Emma (8 years old) and Jack (5 years old).
  • Income: John works part-time, earning £600 per month. Sarah is currently unemployed and receives benefits.

Benefits Received:

  • Universal Credit
  • Child Benefit
  • Housing Benefit

Situation: 

Sarah and John rely on benefits to cover their living expenses, including rent, utilities, and groceries. Their total benefits amount to £1,800 per month.

Impact of the Benefit Cap: 

The Benefit cap limits the total amount of benefits a household can receive. For a family living outside Greater London, the cap is set at £1,666.67 per month
Since Sarah and John's benefits exceed this amount, they will be affected by the cap.

Consequences:

Their Universal Credit payments will be reduced to ensure their total benefits do not exceed the cap.
Sarah and John will need to find ways to manage their reduced income, such as cutting down on non-essential expenses or seeking additional work.

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