The term DSS housing is still widely used in the private rental sector, though it refers to a government department that no longer exists. In practice, DSS tenant or DSS housing means a tenant who receives housing benefit or the housing cost element of Universal Credit to help pay their rent, with some or all of the rent being met by the benefit payment rather than entirely from the tenant's own income.

The Origin of the Term

The Department of Social Security (DSS) was the government department responsible for administering state benefits in the UK until 2001, when it was abolished and its functions transferred to the newly created Department for Work and Pensions. Housing benefit was administered at that time through local councils but coordinated by the DSS. The term DSS has remained in informal use among landlords and letting agents as shorthand for tenants on housing benefit, long after the department itself ceased to exist.

The No-DSS Controversy

Many landlords have historically advertised properties as "no DSS" or refused to let to tenants receiving housing benefit. This practice has been challenged legally in recent years. A 2020 County Court ruling in a case brought by Shelter found that blanket no-DSS policies by a letting agent were indirectly discriminatory against women and disabled people, who are disproportionately represented among housing benefit claimants, and therefore unlawful under the Equality Act 2010. While this ruling does not in itself make it always unlawful to decline a tenant on housing benefit, it has significantly changed the landscape and many landlords and agencies have removed no-DSS policies.

Universal Credit

Housing benefit for working-age claimants is now being incorporated into Universal Credit. New working-age claimants receive the housing cost element through Universal Credit rather than a separate housing benefit claim. Under Universal Credit, the housing element is paid to the claimant rather than directly to the landlord in most cases, though landlords can request direct payment in certain circumstances. Pension-age claimants continue to receive housing benefit separately.

Summary

DSS housing informally refers to accommodation let to tenants receiving housing benefit or Universal Credit housing element. The term comes from the now-defunct Department of Social Security. Blanket no-DSS policies have been found to be potentially discriminatory under the Equality Act 2010. Housing benefit for working-age claimants is being replaced by Universal Credit. Local housing allowance rates cap the benefit amount available for a given property size and area.