Guidance

S2/2025: Housing Benefit Administration Subsidy arrangements for English, Scottish and Welsh local authorities for the financial year ending March 2026

Updated 4 April 2025

Applies to England, Scotland and Wales

Who should read

All Housing Benefit (HB) colleagues and wider if appropriate.

Officers preparing subsidy claims and estimates.

Action

For information

Subject

Housing Benefit Administration Subsidy arrangements for English, Scottish and Welsh local authorities for the financial year ending March 2026.

Guidance manual

The information in this circular does not affect the content of the HB Guidance Manual.

Queries

Extra copies of this circular and copies of previous circulars are available.  

For queries about technical content of this circular, contact: lawelfare.lafunding@dwp.gov.uk.

For queries about HB administration subsidy payment arrangements, contact: hb.nonsubsidy@dwp.gov.uk.

If you need to ask about the distribution of this circular, contact: lawelfare.correspondence@dwp.gov.uk.

Crown Copyright 2025

Recipients may freely reproduce this circular.

Introduction  

1. This circular contains final details of the distribution of the Housing Benefit Administration Subsidy (HBAS) for the financial year ending (FYE) March 2026. 

2. Provision for the FYE March 2026 HBAS arrangements will be made by an Amendment Order to the Income-related Benefits (Subsidy to Authorities) Order 1998, which will be subject to consultation with the local authority (LA) associations (LAAs) prior to being laid in Parliament. 

3. LAAs and LA representatives have been consulted regarding the distribution methodology.

Background 

4. Following the abolition of Council Tax Benefit (CTB) and the introduction of Local Council Tax Support (LCTS) in April 2013, the funding baseline for Housing Benefit/CTB has remained disaggregated. The Department for Work and Pensions (DWP) is responsible for allocating the HB element to LAs and the Ministry of Housing, Communities and Local Government is responsible for distributing the LCTS element to their respective LAs

5. The FYE March 2026 HBAS allocation by country is: 

  • English LAs – £157.022 million 

  • Scottish LAs – £18.913 million 

  • Welsh LAs – £9.472 million 

6. This funding is calculated by deducting the Universal Credit (UC) reduction from the FYE March 2026 HBAS, which is consistent with DWP’s baseline funding. 

7. For the FYE March 2026, no departmental efficiency reduction has been applied.

Universal Credit rollout 

8. The FYE March 2026 HBAS funding takes into account the estimated volume of HB claimants moving to UC by the FYE March 2025, as UC reductions are applied to the year after they are realised. 

9. UC reductions of £4.535 million have been applied to the total amount of the FYE March 2025 HBAS for Great Britain. This is in addition to the £37.798 million deducted from the baseline, which is the cumulative UC reduction value applied up to and including the FYE March 2025 HBAS funding. 

10. UC reductions are profiled across a number of financial years. The FYE March 2026 UC reductions continue to reflect current policies.

Distribution methodology 

11. This funding is a contribution to the cost of administering HB. The current methodology uses only HB caseload data, weighted to account for geographical differences, to determine the proportion of core HBAS allocated to each LA. The FYE March 2026 allocation is based on HB caseload data up to May 2024. 

12. The methodology was changed ahead of the FYE March 2025 HBAS allocations and transitional arrangements were applied to phase the impact of the change in methodology over three years. Increases and reductions in funding caused by the change in the FYE March 2025 was limited to one third of the difference, and it has been limited to two thirds of the difference for the FYE March 2026. 

13. The UC reductions have been calculated based on the amount of HB Working Age caseload moving to UC. SHBE (Single Housing Benefit Extract) and UC data have been used to determine the expected change in workloads due to UC in the FYE March 2025 and these have been applied to the FYE March 2026 allocations. 

14. Allocations are rounded to the nearest pound.

National funding for the FYE March 2026 

15. The table that follows details the total national funding level available for the FYE March 2026 compared to the FYE March 2025. 

16. Some residual funding has been incorporated into the FYE March 2026 HBAS allocations, as New Burdens funding for the benefit cap has now ended because most of the impacted claims are transitioning to UC.  

17. Similarly, funding for the Verify Earnings and Pensions (VEP) service and the Housing Benefit Matching Service (HBMS) element of the HBAA Initiative have diminished due to caseload volumes and have also been incorporated with HBAS.

HB administration subsidy FYE March 2025 (£million rounded) FYE March 2026 (£million rounded)
HBAS allocation (previous year) 186.981 189.942*
Less adjustment for UC -1.691 -4.535
Less departmental efficiency reduction -0.000 -0.000
HBAS funding level 185.289 185.407*

*includes residual funding as noted in paragraphs 16 and 17 above

Payment of HBAS 

18.  Payments of HBAS (see Annexes A, B and C for individual LA allocations) will be made in 12 monthly instalments starting in April 2025. The overall subsidy available to support HB administration costs is cash limited. 

19. There is no provision for any adjustments to be made to individual LA allocations.

Annex A –LA allocations – England 

Local Authority Final DWP HBAS allocation (£) for the FYE March 2026
Adur District Council 139,434
Amber Valley Borough Council 283,355
Arun District Council 358,393
Ashfield District Council 323,223
Ashford Borough Council 296,950
Babergh District Council 159,774
Barnsley Metropolitan Borough Council 739,570
Basildon Council 515,869
Basingstoke and Deane Borough Council 332,245
Bassetlaw District Council 278,022
Bath and North East Somerset Council 376,094
Bedford Borough Council 440,439
Birmingham City Council 5,464,583
Blaby District Council 126,462
Blackburn with Darwen Borough Council 439,970
Blackpool Council 633,791
Bolsover District Council 216,713
Bolton Council 874,853
Borough Council of King’s Lynn and West Norfolk 334,941
Borough of Broxbourne Council 221,571
Boston Borough Council 167,912
Bournemouth, Christchurch and Poole Council 1,070,106
Bracknell Forest Council 227,320
Braintree District Council 309,069
Breckland Council 288,195
Brent Council 1,435,546
Brentwood Borough Council 113,020
Brighton and Hove City Council 1,024,719
Bristol City Council 1,466,542
Broadland District Council 182,300
Bromsgrove District Council 146,878
Broxtowe Borough Council 213,241
Buckinghamshire Council 880,603
Burnley Borough Council 311,854
Bury Council 476,563
Calderdale Council 563,314
Cambridge City Council 300,979
Cannock Chase District Council 229,353
Canterbury City Council 347,784
Castle Point Borough Council 155,691
Central Bedfordshire Council 496,719
Charnwood Borough Council 291,905
Chelmsford City Council 336,157
Cheltenham Borough Council 247,827
Cherwell District Council 266,687
Cheshire East Council 693,117
Cheshire West and Chester Council 798,614
Chesterfield Borough Council 347,094
Chichester District Council 258,255
Chorley Council 234,140
City of Bradford Metropolitan District Council 1,407,851
City of Lincoln Council 307,359
City of London Corporation 52,793
City of Wolverhampton Council 869,413
City of York Council 337,687
Colchester Borough Council 391,763
Cornwall Council 1,523,069
Cotswold District Council 155,543
Council of the Isles of Scilly 1,633
Coventry City Council 1,004,613
Crawley Borough Council 332,482
Croydon Council 1,303,004
Cumberland Council 690,816
Dacorum Borough Council 376,150
Darlington Borough Council 324,262
Dartford Borough Council 207,630
Derby City Council 739,651
Derbyshire Dales District Council 118,114
Doncaster Council 908,160
Dorset Council 819,746
Dover District Council 314,211
Dudley Metropolitan Borough Council 780,474
Durham County Council 1,789,547
East Cambridgeshire District Council 154,359
East Devon District Council 272,836
East Hampshire District Council 176,657
East Herts District Council 241,187
East Lindsey District Council 411,653
East Riding of Yorkshire Council 641,528
East Staffordshire Borough Council 217,048
East Suffolk Council 592,563
Eastbourne Borough Council 364,999
Eastleigh Borough Council 225,406
Elmbridge Borough Council 253,013
Enfield Council 1,359,078
Epping Forest District Council 266,048
Epsom and Ewell Borough Council 135,077
Erewash Borough Council 272,177
Exeter City Council 335,667
Fareham Borough Council 155,047
Fenland District Council 254,956
Folkestone and Hythe District Council 312,844
Forest of Dean District Council 184,101
Fylde Council 178,521
Gateshead Council 750,920
Gedling Borough Council 225,517
Gloucester City Council 328,509
Gosport Borough Council 210,351
Gravesham Borough Council 240,715
Great Yarmouth Borough Council 340,583
Guildford Borough Council 233,519
Halton Borough Council 453,062
Harborough District Council 112,635
Haringey Council 1,314,656
Harlow Council 280,668
Harrow Council 653,974
Hart District Council 103,199
Hartlepool Borough Council 396,281
Hastings Borough Council 400,824
Havant Borough Council 224,163
Herefordshire Council 397,950
Hertsmere Borough Council 243,786
High Peak Borough Council 197,749
Hillingdon Council 823,944
Hinckley and Bosworth Borough Council 173,293
Horsham District Council 228,322
Hull City Council 1,154,817
Huntingdonshire District Council 294,820
Hyndburn Borough Council 268,832
Ipswich Borough Council 411,377
Isle of Wight Council 421,144
Islington Council 1,524,275
Kirklees Council 1,058,351
Knowsley Metropolitan Borough Council 646,809
Lancaster City Council 350,747
Leeds City Council 2,224,871
Leicester City Council 1,003,941
Lewes District Council 237,591
Lewisham Council 1,540,725
Lichfield District Council 172,380
Liverpool City Council 2,379,484
London Borough of Barking and Dagenham 733,662
London Borough of Barnet 1,277,392
London Borough of Bexley 514,523
London Borough of Bromley 771,589
London Borough of Camden 1,356,555
London Borough of Ealing 1,373,909
London Borough of Hackney 2,039,340
London Borough of Hammersmith and Fulham 1,006,544
London Borough of Havering 541,264
London Borough of Hounslow 856,541
London Borough of Lambeth 1,856,729
London Borough of Newham 1,565,849
London Borough of Redbridge 810,401
London Borough of Richmond Upon Thames 424,410
London Borough of Tower Hamlets 1,797,888
London Borough of Waltham Forest 865,136
Luton Borough Council 573,814
Maidstone Borough Council 326,241
Maldon District Council 112,736
Malvern Hills District Council 151,742
Manchester City Council 2,296,060
Mansfield District Council 325,803
Medway Council 641,746
Melton Borough Council 82,727
Merton Council 505,429
Mid Devon District Council 156,443
Mid Suffolk District Council 151,267
Mid Sussex District Council 223,390
Middlesbrough Council 564,697
Milton Keynes Council 733,622
Mole Valley District Council 162,247
New Forest District Council 325,842
Newark and Sherwood District Council 264,506
Newcastle City Council 1,113,692
Newcastle-Under-Lyme Borough Council 280,692
North Devon Council 237,599
North East Derbyshire District Council 251,186
North East Lincolnshire Council 491,307
North Hertfordshire District Council 253,407
North Kesteven District Council 187,690
North Lincolnshire Council 394,836
North Norfolk District Council 245,468
North Northamptonshire Council 724,215
North Somerset Council 497,591
North Tyneside Council 662,822
North Warwickshire Borough Council 126,715
North West Leicestershire District Council 172,236
North Yorkshire Council 1,204,650
Northumberland County Council 835,450
Norwich City Council 569,271
Nottingham City Council 1,248,736
Nuneaton and Bedworth Borough Council 319,487
Oadby and Wigston Borough Council 79,454
Oldham Council 689,591
Oxford City Council 388,814
Pendle Borough Council 220,470
Peterborough City Council 577,194
Plymouth City Council 854,004
Portsmouth City Council 804,480
Preston City Council 410,910
Reading Borough Council 474,154
Redcar and Cleveland Borough Council 478,990
Redditch Borough Council 207,786
Reigate and Banstead Borough Council 264,799
Ribble Valley Borough Council 73,717
Rochdale Borough Council 752,275
Rochford District Council 121,760
Rossendale Borough Council 170,714
Rother District Council 221,356
Rotherham Metropolitan Borough Council 813,583
Royal Borough of Greenwich 1,336,566
Royal Borough of Kensington and Chelsea 980,467
Royal Borough of Kingston Upon Thames 397,831
Royal Borough of Windsor and Maidenhead 240,919
Rugby Borough Council 190,783
Runnymede Borough Council 147,612
Rushcliffe Borough Council 156,471
Rushmoor Borough Council 259,781
Rutland County Council 55,594
Salford City Council 1,064,777
Sandwell Metropolitan Borough Council 1,034,505
Sefton Council 888,107
Sevenoaks District Council 217,483
Sheffield City Council 1,768,265
Shropshire Council 655,570
Slough Borough Council 406,585
Solihull Metropolitan Borough Council 447,845
Somerset Council 1,251,926
South Cambridgeshire District Council 228,589
South Derbyshire District Council 156,301
South Gloucestershire Council 440,852
South Hams District Council 184,657
South Holland District Council 161,462
South Kesteven District Council 270,917
South Norfolk Council 224,938
South Oxfordshire District Council 206,764
South Ribble Borough Council 181,882
South Staffordshire District Council 205,748
South Tyneside Council 666,320
Southampton City Council 827,021
Southend-On-Sea Borough Council 567,642
Southwark Council 1,748,278
Spelthorne Borough Council 199,254
St Albans City and District Council 233,066
St Helens Council 592,243
Stafford Borough Council 228,786
Staffordshire Moorlands District Council 142,378
Stevenage Borough Council 248,806
Stockport Metropolitan Borough Council 643,678
Stockton-On-Tees Borough Council 553,127
Stoke-On-Trent City Council 842,675
Stratford-On-Avon District Council 233,823
Stroud District Council 216,697
Sunderland City Council 1,122,884
Surrey Heath Borough Council 120,480
Sutton Council 535,925
Swale Borough Council 371,169
Swindon Borough Council 526,080
Tameside Metropolitan Borough Council 762,755
Tamworth Borough Council 178,181
Tandridge District Council 155,734
Teignbridge District Council 288,551
Telford and Wrekin Council 560,008
Tendring District Council 438,175
Test Valley Borough Council 218,258
Tewkesbury Borough Council 151,332
Thanet District Council 477,464
Three Rivers District Council 169,602
Thurrock Council 399,104
Tonbridge and Malling Borough Council 242,341
Torbay Council 465,590
Torridge District Council 155,259
Trafford Council 516,999
Tunbridge Wells Borough Council 226,201
Uttlesford District Council 134,899
Vale of White Horse District Council 205,797
Wakefield Council 1,073,923
Walsall Council 847,538
Wandsworth Council 1,335,428
Warrington Borough Council 475,902
Warwick District Council 252,529
Watford Borough Council 246,194
Waverley Borough Council 211,995
Wealden District Council 236,555
Welwyn Hatfield Borough Council 318,085
West Berkshire Council 293,291
West Devon Borough Council 109,584
West Lancashire Borough Council 255,991
West Lindsey District Council 213,381
West Northamptonshire Council 771,832
West Oxfordshire District Council 175,454
West Suffolk Council 347,897
Westminster City Council 1,469,906
Westmorland and Furness Council 429,924
Wigan Council 899,833
Wiltshire Council 895,439
Winchester City Council 219,457
Wirral Council 1,127,673
Woking Borough Council 188,604
Wokingham District Council 172,685
Worcester City Council 235,202
Worthing Borough Council 280,166
Wychavon District Council 240,197
Wyre Council 267,936
Wyre Forest District Council 264,837
Total* 157,021,641

*All figures are shown as rounded to the nearest pound which may cause some small discrepancies in the total amount.

Annex B –LA allocations – Scotland 

LA Final DWP HBAS allocation (£) for the FYE March 2026
Aberdeen City Council 620,775
Aberdeenshire Council 434,133
Angus Council 326,104
Argyll and Bute Council 266,833
Clackmannanshire Council 203,397
Comhairle Nan Eilean Siar 56,070
Dumfries and Galloway Council 515,372
Dundee City Council 721,529
East Ayrshire Council 455,660
East Dunbartonshire Council 187,768
East Lothian Council 293,800
East Renfrewshire Council 172,265
City of Edinburgh Council 1,606,295
Falkirk Council 526,777
Fife Council 1,216,282
Glasgow City Council 3,675,389
Highland Council 619,983
Inverclyde Council 356,526
Midlothian Council 265,602
Moray Council 219,556
North Ayrshire Council 612,403
North Lanarkshire Council 1,323,439
Orkney Islands Council 45,474
Perth and Kinross Council 342,895
Renfrewshire Council 653,164
Scottish Borders Council 344,060
Shetland Islands Council 42,131
South Ayrshire Council 393,838
South Lanarkshire Council 1,074,391
Stirling Council 242,468
West Dunbartonshire Council 462,658
West Lothian Council 636,000
Total* 18,913,035

*All figures are shown as rounded to the nearest pound which may cause some small discrepancies in the total amount.

Annex C – LA allocations – Wales 

LA Final DWP HBAS allocation (£) for the FYE March 2026
Blaenau Gwent County Borough Council 293,453
Bridgend County Borough Council 426,168
Caerphilly County Borough Council 612,364
Cardiff Council 1,157,889
Carmarthenshire County Council 496,728
Ceredigion County Council 178,207
Conwy County Borough Council 362,180
Denbighshire County Council 323,561
Flintshire County Council 373,013
Gwynedd Council 309,171
Isle of Anglesey County Council 191,397
Merthyr Tydfil County Borough Council 204,273
Monmouthshire County Council 208,940
Neath Port Talbot Council 535,376
Newport City Council 513,706
Pembrokeshire County Council 336,385
Powys County Council 320,705
Rhondda Cynon Taf County Borough Council 715,878
Swansea Council 821,663
Torfaen County Borough Council 346,626
Vale of Glamorgan Council 332,216
Wrexham County Borough Council 412,542
Total* 9,472,439

*All figures are shown as rounded to the nearest pound which may cause some small discrepancies in the total amount.