Housing benefit changes will help thousands claims government

Prime Minister Andy Burnham has claimed a “common-sense change” will leave those in supported housing and temporary accommodation “better off”.

New rules coming into force this week mean more than 325,000 residents in supported housing and temporary accommodation will no longer face a drop in income when they increase their working hours.

Under the previous system, people living in supported housing and temporary accommodation often receive help with their day-to-day living costs through Universal Credit, while support for their rent was paid separately through Housing Benefit.

A cliff edge

The two systems had different rules on how much someone could earn before their benefits were reduced, with Housing Benefit less generous than Universal Credit.

That meant some residents moving into work or taking on more hours could see their Housing Benefit cut faster, leaving them worse off despite earning more.

The government says this created a “cliff edge”, with the risk of losing housing support discouraging some people from taking on more work. The new regulations change how housing benefit is calculated, bringing it in line with Universal Credit.

Prime Minister Andy Burnham said: “People should never have to choose between keeping a roof over their head or being able to work. But the system has been rigged against some of the very people trying their hardest to get on, particularly young people starting out, who are being left worse off for earning more.

“We’re putting that right through a common-sense change that will help people keep more of what they earn. This is what progressive welfare reform looks like: helping people into work and giving families the security and breathing space they need to get on. That’s how we make Britain better off.”

End homelessness for good

Homelessness minister, Florence Eshalomi, added: “We’re investing over £4 billion to end homelessness for good, and employment is an important step in many people’s recovery. This is a crucial intervention that supports this mission, helping people into secure work or increase their earnings from work, in turn building lasting independence.

“We’ll continue to support people in temporary accommodation by ensuring that safe, stable placements are available to all who need them, tackling the unlawful use of B&Bs for families and improving access to vital support services.”

The government says new earned income disregards are being introduced for working-age people in supported housing and temporary accommodation. This means more of their earnings will be ignored when housing benefit is calculated, allowing support to taper off more gradually as their income rises.

For example, a single claimant aged 25 or over will have £77.73 of their weekly earnings disregarded, while a couple with at least one person aged 25 or over will have £119.70 disregarded. These amounts will be increased each year in line with changes to Universal Credit.