© Crown copyright 2018
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: email@example.com.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/universal-credit-and-your-home-quick-guide/universal-credit-and-your-home
1. Paying your rent
Universal Credit is paid monthly and may include money towards your housing costs.
You will be responsible for using this money to pay your landlord yourself.
The additional amount for housing costs you get in your Universal Credit payment may not cover all of your rent, so you will be responsible for covering any shortfall yourself.
You will need to manage your money carefully so that you can pay your landlord on time. You should speak to your landlord to agree the best way to pay them, for example by setting up direct debits and/or standing orders to pay your rent and other bills like gas and electricity.
You may be used to managing your money in this way, but help is available if you could do with some support. Your work coach will talk to you about the types of help you might find useful. The Money Advice Service has an online money manager support tool which provides free and impartial budgeting information and advice based on your personal circumstances.
Most people who are in work are responsible for paying their own rent. Paying your housing costs to you rather than your landlord will help you get used to making these payments.
2. Service charges
Universal Credit may include an amount towards service charges that you need to pay your landlord. Landlords can identify which charges are supported by Universal Credit and will be able to tell you the total amount you can get support for. It is the intention that all service charges that are covered by the current system will still be covered with Universal Credit.
3. Paying your mortgage
If you and/or your partner own the home you live in, you may be eligible for Support for Mortgage Interest (SMI). SMI is paid as a loan, which you’ll need to pay back when the property is sold or ownership is transferred. The amount you receive will be based on a set rate of interest applied to your outstanding mortgage. It will be paid direct to your mortgage lender. Once you or your partner are receiving earned income, you will no longer be eligible to receive SMI loan payments.
If your house is leasehold you may also receive help with some service charges as part of your Universal Credit.