Can I Swap If I’m on Universal Credit?

If you get Universal Credit, you might worry that it could stop you swapping homes, or that your payments could be affected. The good news: being on Universal Credit doesn't stop you doing a mutual exchange. You just need to plan for a few changes.

Yes, You Can Swap On Universal Credit

Landlords decide on a swap based on things like rent arrears, the size of the home and your tenancy, not on whether you get benefits. Many tenants who swap get Universal Credit or Housing Benefit. What landlords will look at is whether your rent account is clear. If you're behind, read Can I Do a Mutual Exchange With Rent Arrears?

Your Housing Costs Will Be Worked Out Again

The housing part of your Universal Credit is based on the rent of the home you live in and how many bedrooms your household needs. After a swap, both can change, so your payment will be recalculated.

Bedrooms And The Spare Room Rule

For working-age tenants in social housing, if you have more bedrooms than the rules say you need, your housing costs are reduced:

• 14% less for one spare bedroom
• 25% less for two or more spare bedrooms

This works both ways in a swap:

• Down-sizing to a home the right size can remove the reduction, often saving a noticeable amount each month.
• Upsizing to a home bigger than your household needs could add a reduction, so check before you agree.

Pension-age tenants aren't affected by the spare room rule.

Rent And Service Charges

Universal Credit covers your rent and some eligible service charges, but not things like heating or water included in your rent. If the new home's rent is higher, your housing costs should rise to match, as long as the home is the right size.

Tell Universal Credit Straight Away

Report your change of address and new rent in your Universal Credit journal on the day you move. You'll need your new rent amount, which your new landlord can confirm. Reporting late can mean being underpaid, or overpaid and having to pay it back.

Universal Credit normally only pays housing costs for one home. Because swaps happen on the same day, you shouldn't be paying for two homes, but agree the move date carefully with the other household and both landlords.

Help With Moving Costs

Moving costs money: a van, petrol, packing and connecting services. You might be able to get help:

• Budgeting Advance: if you've been on Universal Credit for a while, you can apply for an advance for one-off costs, including moving. You repay it from future payments.
• Discretionary Housing Payment: some councils help with removal costs, especially when you're moving to a smaller or cheaper home to make your rent manageable. Ask your council.
• Your landlord: some landlords offer down-sizing incentives or help with removals if you're moving out of a family-size home you no longer need.

If You Get Housing Benefit Instead

If you're on Housing Benefit, or you're pension age, the same ideas apply: tell your council's Housing Benefit team about your new address and rent, and your benefit will be worked out for the new home. Moving to a different council area means making a new claim with the new council.

Checklist

1. Make sure your rent account is clear.
2. Check how many bedrooms your household needs, and how the new home compares.
3. Ask the new landlord for the full rent and service charges.
4. Plan moving costs, and ask about a Budgeting Advance or council help.
5. Report your new address and rent in your journal on moving day.

The Short Answer

Yes, you can swap your home while you're on Universal Credit. Your housing costs will be recalculated for the new home, so a home the right size, especially if you're down-sizing, can leave you better off. Report the move straight away and plan for moving costs.

Ready to look? Search homes to swap, or read How Does a Mutual Exchange Work?