DWP and DSS Tenants – A Landlords Guide to Housing Benefits

A DSS or DWP tenant is a renter whose housing costs are supported by benefits such as Housing Benefit or the housing element of Universal Credit. "DSS" refers to the former Department of Social Security (renamed the Department for Work and Pensions in 2001), and the label has stuck. Landlords can let to benefit tenants with normal referencing, but blanket "No DSS" bans are unlawful discrimination, so you must assess each application on affordability, not benefit status.

Key takeaways

• DSS and DWP tenants receive Housing Benefit or Universal Credit housing support.
• Blanket "No DSS" or "No benefits" policies are unlawful; assess affordability case by case.
• Local Housing Allowance (LHA) sets the maximum housing support by area and household size.
• If a benefit tenant falls into arrears, you can often apply for managed payments direct from the DWP.
• Reference benefit tenants as you would any tenant, including a right to rent check.

Renting to DSS tenants can be a good way to minimise vacancies for your buy-to-let property, but it comes with trade-offs. Landlords need to know how to find and secure DSS tenants, how housing benefits are paid, and the rules on refusing applicants, so you can make fair, informed decisions.

What is a DSS/DWP tenant?

DSS stands for Department of Social Security. DSS tenants are people who receive housing benefits from the council to support them through periods of financial difficulty, typically due to unemployment, disability, or single-parent status. These benefits are paid as an allowance towards living expenses that includes a contribution to rent. The Department of Social Security was officially renamed the Department for Work and Pensions (DWP) in 2001, but the term DSS has stuck. In this context DSS and DWP refer to the same thing.

Can landlords refuse DSS tenants?

No, not with a blanket ban. While landlords can choose tenants on affordability, blanket bans on DSS tenants are discriminatory. Courts have ruled that "No DSS" policies may breach the Equality Act 2010, and letting agents cannot refuse applicants solely because they receive benefits. Under the Renters' Rights Act 2025:

• It is unlawful for landlords or letting agents to impose blanket bans on tenants who receive benefits or have children.
• The prohibition covers overt practices (such as "No DSS" adverts) and indirect ones, such as requiring higher deposits or advance rent specifically from benefit-receiving tenants.
• Landlords and agents must evaluate applications individually, considering income and affordability, rather than benefit status alone.
• Local housing authorities can impose financial penalties on landlords or agents who breach these rules.

Assess affordability on a case-by-case basis rather than using blanket restrictions.

How do you secure a DSS tenant?

The process is much like securing a regular tenant, with one additional step: the pre-tenancy determination. The tenant enquires as normal, you arrange a viewing, and if both sides want to proceed, a pre-tenancy determination form is completed and handed to the tenant's housing officer.

The council then assesses the property value and the tenant's situation before making a rental offer, which may cover part or all of the rent. You draw up a tenancy agreement as normal, the tenant signs, and the housing officer usually asks to see the signed agreement before payments begin.

Each council operates slightly differently. Most pay the housing benefit allowance to the tenant, who is then responsible for paying rent, but some allow direct payments to the landlord depending on the tenant's circumstances. You can read more about managed payments and how to apply at GOV.UK.

Understanding DSS income and housing benefits

DSS income refers to government benefits that help cover housing costs. These can include:

• Housing Benefit: for tenants on a low income, retired, or with disabilities.
• Universal Credit: which may include a housing element for eligible claimants.
• Local Housing Allowance (LHA): which sets the maximum benefit based on property location and household size.

The amount a tenant receives depends on LHA rates and their individual circumstances, and it often does not cover the full rent, meaning the tenant may need to pay the difference.

What's the difference between Housing Benefit and Universal Credit?

Housing Benefit is gradually being replaced by Universal Credit. Housing Benefit is paid by local authorities, typically every two or four weeks, while Universal Credit is paid monthly by central government. Introduced in 2013, Universal Credit replaced six legacy benefits, and anyone applying for support for the first time now receives Universal Credit. Its housing element is a means-tested benefit to help tenants on low incomes pay rent, with the amount determined by the Local Housing Allowance (LHA).

How are Local Housing Allowance (LHA) levels set?

LHA levels are calculated using the 30th percentile rent for different property sizes within each Broad Rental Market Area (BRMA).

• A BRMA is a geographic area grouped by similar rental markets, used to set fair rent levels for housing benefit purposes.
• The 30th percentile means 30% of available properties of that size in the area are at or below this rent level.
• LHA rates are set by the Department for Work and Pensions (DWP) using data from the Valuation Office Agency (VOA).

LHA rates were frozen at March 2020 levels for several years before being unfrozen from April 2024 to the 30th percentile of local rents, following the Chancellor's Autumn Statement of November 2023. Rates are reviewed periodically and can be frozen again, so always check the current LHA rate for your Broad Rental Market Area using the official LHA tool before relying on a figure. Campaigners including Shelter and the NRLA have long argued that frozen rates leave support lagging behind real rents.

What to know before accepting DSS tenants

As a landlord, it is your responsibility to thoroughly vet any tenant, DSS or not, and ensure they can afford the rent regardless of how it is paid. Screening and referencing can include an affordability check and references from previous landlords, and you must confirm the tenant's right to rent. If a tenant has a history of missed payments, it may be worth investigating managed payments before dismissing the application.

To find DSS tenants, contact your local council. Many authorities lack housing stock and rely on private landlords, so they may supply a steady source of tenants. If you are open to benefit tenants, say so clearly when advertising.

What can a landlord do if a DSS tenant stops paying rent?

If a tenant who receives Housing Benefit or Universal Credit stops paying, you can often apply for managed payments, where the rent is paid directly from the DWP rather than through the tenant. To claim, the tenant generally needs to have missed at least two months of payments. If managed payments are not an option, the alternative is to follow the usual eviction procedures, for example using a Section 8 notice. Related: what landlords can do when rent is late.

Frequently Asked Questions

What does DSS mean?

DSS stands for Department of Social Security, the former government department renamed the Department for Work and Pensions (DWP) in 2001. A "DSS tenant" is a renter whose housing costs are supported by benefits such as Housing Benefit or Universal Credit.

Can a landlord refuse a DSS tenant?

Not with a blanket ban. "No DSS" policies are considered discriminatory and may breach the Equality Act 2010, and the Renters' Rights Act 2025 makes blanket bans on benefit tenants unlawful. You can still decline an application on genuine affordability grounds assessed case by case.

Can Universal Credit be paid directly to the landlord?

Yes, in certain circumstances. Through a managed payment (an Alternative Payment Arrangement), the housing element can be paid directly to the landlord, typically where the tenant has rent arrears of at least two months or is assessed as needing support managing payments.

Does housing benefit cover all of the rent?

Not always. The amount is capped by the Local Housing Allowance for the area and household size, and often falls short of the full market rent, so the tenant may need to pay the difference.

How do I reference a tenant on benefits?

Reference them as you would any tenant: run an affordability check, request previous-landlord references, and complete a right to rent check. Affordability can include the tenant's benefit income alongside any other income.

DSS/DWP tenants: final words

DSS tenants have historically found it hard to secure housing, partly because some landlords avoid the perceived complications. But many are legitimate, responsible tenants who need housing, and serving this underserved market can reduce vacancies. By understanding managed payments, the rules on discrimination, and the referencing process, you can let to benefit tenants fairly while managing the risks. Whether DSS tenants suit your rental ultimately depends on your situation and property.

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