The Department for Work and Pensions (DWP) has given details a major change to housing benefit rules which will come into force in October
Anyone claiming housing benefit is being informed about new regulations which have been announced today. Under the alterations, claimants could previously face penalties for boosting their working hours – putting them off from finding jobs and leading some to choose to remain on benefits, officials explained.
The Department for Work and Pensions confirmed that the fresh regulations will take effect on October 6 and will instantly affect 300,000 individuals. The government explained the existing system left vulnerable people in supported accommodation forced to choose between remaining unemployed, or risking the loss of their housing support, because the work allowance was more generous for Universal Credit than it was for Housing Benefit.
The DWP stated: “The less generous rules for Housing Benefit created a cliff edge that trapped people on benefits rather than supporting them into work. Some landlords even discouraged residents from taking jobs to protect their own rental income. As part of the Government’s commitment to move from a welfare state to a working state, the regulations change how Housing Benefit is calculated so it works in the same way as Universal Credit – a change that will incentivise work for 315,000 people when they come into force in October 2026.”
Sir Stephen Timms, Minister for Social Security and Disability, stated: “The system we inherited was actively pushing some of the most vulnerable residents away from work rather than towards it. These changes fix that – ensuring residents can keep more of what they earn, so that taking a job or increasing hours always pays better than benefits.
“This announcement delivers on a commitment made in our Autumn Budget, and forms part of the government’s wider plan to reform the welfare system – tearing out the barriers that have trapped people in dependency.”
“We are replacing that system with one that rewards work and ensures people keep more of what they earn, while protecting those who need it most.”
Officials announced that the change, which was presented in Parliament today, comes alongside previous measures to assist individuals on disability benefits who wish to work. The DWP said: “We have already rebalanced Universal Credit to tackle the perverse incentives that discouraged work and introduced Right to Try legislation, allowing sick or disabled people to try work without the immediate fear of reassessment.
“These measures come alongside our Connect to Work programme, which delivers tailored, personalised, local support that will help 300,000 people into work, and the deployment of 1000 Pathways to Work advisers to help those written off by the previous Government. “
Five fresh earned income disregards are being brought in for working-age Housing Benefit recipients in supported housing and temporary accommodation.