Disability Living Allowance does not reduce your Housing Benefit

Disability Living Allowance (DLA) is a non-means-tested benefit, which means the amount you receive does not count as income when the council calculates your Housing Benefit. You can receive both payments at their full rates without one cutting into the other.

This is different from other disability payments. Some benefits—like Employment and Support Allowance or Incapacity Benefit—are counted as income and will reduce your Housing Benefit pound for pound above a certain threshold. DLA avoids this trap entirely because it is designed to cover the extra costs of disability, not to replace lost wages.

The distinction matters because DLA is typically higher than other disability payments, and losing part of it to a Housing Benefit reduction would defeat its purpose. The government treats DLA as a cost-of-living payment rather than an income replacement, so your council housing officer will not deduct it from what you receive for rent.

Key Takeaways

  • DLA does not count as income for Housing Benefit purposes, so receiving DLA will not reduce the amount of Housing Benefit you are paid.
  • Other disability benefits like Employment and Support Allowance do count as income and will reduce Housing Benefit above a set threshold.
  • Your council will ask about all income sources when you claim Housing Benefit, but you should declare DLA separately so they do not mistakenly treat it as earned income.
  • If your Housing Benefit was reduced after you started receiving DLA, contact your council to ask them to recalculate—this usually means an error in how they recorded your claim.

What counts as income for Housing Benefit and what does not

Housing Benefit is a means-tested benefit, which means your council checks your income and savings before deciding how much to pay you. However, not all money you receive counts as "income" for this purpose. The rules have a specific list of what does and does not reduce your Housing Benefit.

DLA falls into the category of benefits that are disregarded—meaning ignored completely. The same applies to Attendance Allowance (for people over 65), Personal Independence Payment (PIP), and War Disablement Pension. These are all treated as cost-of-living payments rather than income, so they sit outside the Housing Benefit calculation.

By contrast, Employment and Support Allowance, Jobseeker's Allowance, Income Support, and Incapacity Benefit all count as income. If you receive any of these, your Housing Benefit will be reduced by the amount you earn above a small personal allowance (usually around £5 to £10 per week, depending on your age and circumstances).

How your council records DLA on your Housing Benefit claim

When you claim Housing Benefit, your council will ask you to list all income sources. You must declare DLA, but you should make clear that it is DLA, not another type of payment. Some councils have separate boxes on the form for different benefits; others ask you to list everything and then sort it out later.

The risk is that a council officer might misread "disability benefit" as Employment and Support Allowance or another income-counted benefit, especially if the form is handwritten or the information comes through a phone call. This is a common source of error. If your Housing Benefit was reduced after you started receiving DLA, ask your council to check which benefit they recorded against your claim.

You can check what your council thinks you are receiving by asking for a copy of your Housing Benefit assessment. The form will list your income sources line by line. If DLA is missing or listed under the wrong name, ask them to correct it in writing and recalculate your Housing Benefit from the date the error began.

What happens if you receive DLA and other disability benefits together

Some people receive DLA and another disability benefit at the same time—for example, DLA and Employment and Support Allowance. In this case, only the Employment and Support Allowance counts as income for Housing Benefit. The DLA is still disregarded.

Your Housing Benefit will be calculated based on the Employment and Support Allowance amount, your age, your rent, and your savings. DLA sits outside this calculation entirely. This is actually one of the reasons DLA is valuable: you can receive it alongside other benefits without it triggering a reduction in Housing Benefit.

If you are unsure whether you are receiving the right amount of Housing Benefit given your mix of benefits, you can ask your council to do a full recalculation. Bring a list of all the benefits you receive, with the name and amount of each one. The council should then work through the Housing Benefit rules and tell you what you should be paid.

DLA and Housing Benefit if you move or your circumstances change

If you move house and need to claim Housing Benefit in a new council area, you will need to declare your DLA again. Different councils sometimes explore the rules slightly differently, so it is worth checking that the new council has recorded DLA correctly before you accept their first decision.

If your DLA rate changes—for example, if you move from the middle rate to the higher rate—you should tell your Housing Benefit team. The change to DLA itself will not affect your Housing Benefit, but it may affect other things (such as whether you may have access to for certain premiums or passporting to other benefits). Your council will want to know about any change to your circumstances.

Similarly, if you stop receiving DLA, you must tell your Housing Benefit team. This will not reduce your Housing Benefit directly, but it may affect your may be able to access for other help or change how your council assesses your needs.

The difference between DLA and Personal Independence Payment

Personal Independence Payment (PIP) is the newer benefit that has replaced DLA for most people under 65. Like DLA, PIP is also disregarded for Housing Benefit purposes. If you receive PIP instead of DLA, the same rule applies: it will not reduce your Housing Benefit.

PIP and DLA are not paid together—if you move from DLA to PIP, your DLA will stop. However, during the transition period, some people receive both for a short time. In that case, both are disregarded, and your Housing Benefit is unaffected.

The rates of PIP are different from DLA, and the assessment process is different, but the Housing Benefit treatment is identical. If you are unsure whether you should be on DLA or PIP, or whether you have been moved to PIP correctly, you can ask your local authority for information or contact the Department for Work and Pensions.

What to do if you think your Housing Benefit has been calculated wrongly

If your Housing Benefit was reduced after you started receiving DLA, or if you think your council has made an error, ask them to send you a written explanation of how they calculated your Housing Benefit. This should list all your income sources and show which ones they counted and which ones they disregarded.

If DLA is listed as counted income, or if it is missing entirely, write to your council and ask them to correct it. Include a copy of your DLA award letter so they can see the benefit name clearly. Ask them to recalculate your Housing Benefit from the date you started receiving DLA, and to pay you any arrears (back payments) you are owed.

If your council refuses to correct the error, you can ask for a formal review of their decision. This is called a mandatory reconsideration. You have one month from the date of the decision to ask for this. If you are still unhappy after reconsideration, you can appeal to the First-tier Tribunal (Social Entitlement Chamber).

Frequently Asked Questions

Will I lose Housing Benefit if I get DLA?

No. DLA does not count as income for Housing Benefit, so receiving DLA will not reduce your Housing Benefit payment. You should receive both at their full rates. If your Housing Benefit was reduced after you started receiving DLA, contact your council to ask them to check their records.

What if I receive DLA and Employment and Support Allowance?

Only the Employment and Support Allowance counts as income for Housing Benefit. The DLA is disregarded. Your Housing Benefit will be calculated based on the Employment and Support Allowance amount and your other circumstances, but DLA sits outside this calculation.

Do I have to tell my council about DLA when I claim Housing Benefit?

Yes, you must declare all income and benefits when you claim Housing Benefit. Make sure you clearly state that it is DLA, not another disability benefit. If your council records it incorrectly, they may wrongly reduce your Housing Benefit, so check your assessment and correct any errors in writing.

If I stop receiving DLA, will my Housing Benefit go up?

No. Stopping DLA will not increase your Housing Benefit because DLA was never counted as income in the first place. However, you must tell your council that you have stopped receiving DLA, as this may affect other benefits or support you receive.

Can I receive PIP and Housing Benefit together without a reduction?

Yes. PIP, like DLA, is disregarded for Housing Benefit purposes. You will receive both at their full rates without one reducing the other. The same rule applies whether you receive DLA or PIP.