What Disability Living Allowance and Housing Benefit are

Disability Living Allowance (DLA) is a UK benefit paid to people under 65 who have a physical or mental disability that affects their daily life or mobility. It is not means-tested, meaning your income or savings do not affect whether you receive it. The amount you get depends on the level of help you need, not on how much money you have.

Housing Benefit is a separate payment that helps cover your rent if you are on a low income. It is means-tested, so your income, savings, and household composition all affect the amount. Housing Benefit is administered by your local council, not by the Department for Work and Pensions (DWP) which handles DLA.

The two benefits exist independently, but they often work together in practice. DLA can count as income when your council assesses your Housing Benefit claim, which may reduce the amount of Housing Benefit you receive. Understanding how each one is calculated and how they interact helps you know what to expect when you receive your payment.

Key Takeaways

  • Disability Living Allowance is not means-tested and is based on your care or mobility needs, while Housing Benefit is means-tested and based on your income and rent level.
  • DLA payments count as income when your council calculates your Housing Benefit, which typically reduces the amount of Housing Benefit you receive.
  • DLA is paid by the DWP and Housing Benefit is paid by your local council, so you claim from two different organisations.
  • The amount of DLA you receive depends on which component (care or mobility) and which rate (standard or enhanced) you are awarded.
  • Housing Benefit calculations vary by council and depend on your rent, income, savings, and household size.

How DLA rates are set and what you receive

DLA has two separate components: the care component and the mobility component. You may receive one, both, or neither depending on your assessment. Each component has two rates — a standard rate and an enhanced rate — based on how much help you need.

The care component is paid if you need help with personal care tasks like washing, dressing, toileting, or preparing meals. The mobility component is paid if you have difficulty walking or need supervision when outside. The DWP assesses your needs through a detailed form and, in many cases, a face-to-face assessment with a healthcare professional.

DLA rates change once a year, usually in April. The exact amount you receive is set by the DWP and does not vary based on your other income or savings. Once you know which component and rate you have been awarded, that payment stays the same until your award is reviewed or your circumstances change significantly enough to warrant a reassessment.

How Housing Benefit is calculated when you receive DLA

Your local council calculates Housing Benefit by starting with your may be able to access rent — the amount they consider reasonable for your area — and then subtracting your income. DLA counts as income in this calculation. If you receive £100 per week in DLA, your council will treat that as £100 per week of income when working out how much Housing Benefit you can receive.

The council also considers other income sources: wages, other benefits, pensions, and savings above a certain threshold. They set a personal allowance — an amount of income you can have before Housing Benefit starts to reduce — based on your age and household composition. Any income above that allowance reduces your Housing Benefit by a set percentage, usually around 65 pence for every pound of income over the allowance.

Because DLA counts as income, receiving it often means you receive less Housing Benefit than you would if you had no DLA. However, DLA is still usually worth claiming because the total of both payments together is higher than Housing Benefit alone would be. Your council can tell you the exact effect on your Housing Benefit before you claim DLA, though in practice this rarely happens.

When DLA does not reduce Housing Benefit

Some people receiving DLA see no reduction in Housing Benefit because they are already receiving the minimum amount their council pays. If your Housing Benefit is already at the lowest level — usually because your income is very high relative to your rent — then adding DLA income will not reduce it further; it straightforward cannot go lower.

Additionally, if you are receiving certain disability-related premiums or allowances within your Housing Benefit calculation, these may offset some or all of the reduction caused by DLA income. The rules are complex and vary between councils, so the only way to know your exact position is to contact your local council's Housing Benefit team and ask them to run a calculation for you.

How to claim both benefits and manage the payments

You claim DLA and Housing Benefit through completely separate processes. DLA is claimed through the DWP using a form called the DLA claim form, which you can request by phone or read online. Housing Benefit is claimed through your local council, usually through a form you can collect from the council office or read from their website.

You do not need to claim DLA before claiming Housing Benefit, and you do not need to wait for DLA to be approved before submitting a Housing Benefit claim. However, when you claim Housing Benefit, you must declare all income you receive or expect to receive, including any DLA claim you have already made. If your DLA is approved after your Housing Benefit claim, you must tell your council when ready so they can recalculate your Housing Benefit from the date your DLA started.

Payments are made separately. DLA is usually paid weekly or fortnightly directly into your bank account by the DWP. Housing Benefit is usually paid weekly or fortnightly by your council, also directly into your account. You will receive two separate payment schedules and two separate statements, so keep both for your records.

What happens if your DLA changes or stops

If your DLA award ends — because your reassessment found you no longer meet the criteria, or because you reach age 65 and DLA automatically stops — you must tell your council when ready. Your Housing Benefit will be recalculated without that DLA income, which usually means your Housing Benefit increases. The council should backdate the increase to the date your DLA ended, but you may need to chase this.

If your DLA rate increases — for example, from standard care to enhanced care — tell your council straight away. Your Housing Benefit will be recalculated with the new, higher DLA income, which usually means your Housing Benefit decreases. Again, the council should backdate this change to the date your DLA rate changed.

The DWP and your council do not automatically share information about DLA changes, so it is your responsibility to report changes to both organisations. Failing to do so can result in overpayments of Housing Benefit that you will be asked to repay, even if the overpayment was not your fault.

Frequently Asked Questions

Will receiving DLA stop me from getting Housing Benefit?

No. DLA counts as income, which reduces the amount of Housing Benefit you receive, but it does not stop you from receiving it altogether. In most cases, the combined total of DLA and reduced Housing Benefit is higher than Housing Benefit alone would be, so you are better off claiming both.

Can I appeal if my council says DLA reduces my Housing Benefit too much?

You cannot appeal the fact that DLA counts as income — that is how the system works. However, you can ask your council to check their calculation is correct, and you can appeal if you believe they have made an error in how they have applied the rules. Contact your council's Housing Benefit team to request a recalculation or ask about the appeals process.

What if I receive DLA but my council says I am not may have access to to Housing Benefit?

This can happen if your total income (including DLA) is above the level at which Housing Benefit is paid in your area. You can ask your council to explain the calculation in writing. If you disagree, you can request a formal review or appeal, though you will need to do this within a set timeframe — usually one month from the decision letter.

Do I need to tell both the DWP and my council about changes in my circumstances?

Yes. Changes that affect DLA — such as a change in your care needs or mobility — must be reported to the DWP. Changes that affect Housing Benefit — such as a change in your rent, income, or household composition — must be reported to your council. Some changes, like a change in income, may affect both, so report to both organisations to be safe.

What happens to my Housing Benefit when I reach 65 and DLA stops?

DLA automatically ends when you reach 65. At that point, you may become may have access to to a different disability benefit called Attendance Allowance, which works similarly to DLA. You must claim Attendance Allowance before your DLA ends to avoid a gap in payments. Tell your council about the change so they can recalculate your Housing Benefit based on your new circumstances.