You need to apply to your local council for housing benefit.

Housing benefit covers all or part of the cost of your rent if your savings are below a certain level, currently (September 2009) £16,000.  Full-time students, asylum seekers and people living in the home of a close relative are ineligible for housing benefit, and if you live with your partner or civil partner only one of you may make a claim.  Single people under 25 can only get housing benefit for bedsit accommodation or one room in a shared house.

You can check your eligibility for housing benefit using this online tool.

If successful, you will receive an amount deemed eligible by the council, which may not be the same as your actual rent.  Eligible rent includes actual rent paid and service charges, but never includes bills for water, heating, hot water, lighting, food or fuel even if these are part of your rent.  Housing benefit also depends on your other personal circumstances, such as savings and income, and your local council will help you understand if you are eligible.

People making a new claim for housing benefit may instead qualify for Local Housing Allowance (LHA).  This is for private tenants on a low income renting property or a room from private landlords.  It is based on the area where you live, the number of occupiers in the property and household size.  It is designed to ensure that tenants in similar circumstances in the same area receive the same amount of financial support for their housing costs.  People already on housing benefit will not be affected unless they change address and move into private rented accommodation.

The LHA rates are calculated for individual areas each month. The amount payable will be based on the 'middle of the range' rental figure for the area which the property is in, and will take account of the size of the property.

If the rent of the property you have negotiated with your landlord is lower than the LHA rate you will be able to keep any excess benefit up to a maximum of £15 per week.  This excess will not normally be taken into account when deciding other benefits, and the whole LHA is paid into your bank account.  If the rent is higher than the LHA rate you will be required to pay the difference or look for alternative accommodation within the LHA rates.  Entitlement to the LHA is means-tested and you will need to provide a valid tenancy agreement as proof.

Both housing benefit and Local Housing Allowance are claimed from your local council - contact them as soon as you have a tenancy agreement to apply, as applications can take some time, but will usually be backdated.