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Housing Benefit rules change for 325,000 people in supported accommodation

Summarised from 4 outlets · Updated 7 Oct, 17:37 · Archive

More than 325,000 people in supported housing and temporary accommodation will keep more earnings under new Housing Benefit rules from October 5.

More than 325,000 people living in supported housing and temporary accommodation will be able to keep more of what they earn under new Housing Benefit rules that came into force on October 5. The change removes a benefits 'cliff edge' where taking on extra work or increased hours could result in Housing Benefit being cut faster than earnings increased, leaving some people worse off overall.

Under the previous system, people in supported housing and temporary accommodation received help with living costs through Universal Credit whilst their rent support was paid separately through Housing Benefit. However, the two benefits used different rules when calculating how much someone could earn before their support started to fall. For Housing Benefit claimants, those rules were less generous than the equivalent treatment under Universal Credit.

This meant residents who moved into work or increased their hours could see their Housing Benefit reduced more quickly than their earnings grew. In some cases, the extra money earned from working was partly swallowed up by the loss of housing support.

The new rules are designed to bring the way Housing Benefit is calculated more closely into line with Universal Credit. This change affects working-age Housing Benefit claimants in supported housing and temporary accommodation.

The Government says the change will help remove the barrier to work that the 'cliff edge' created, which could leave people trapped on benefits. Almost 50,000 young people are among those expected to benefit from the rules change.

Housing Benefit rules change for 325,000 people in supported accommodation
Image: News & Star

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In this story: Department for Work and Pensions · Universal Credit · Housing Benefit

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