The Department for Work and Pensions (DWP) has confirmed a rule change that came into force on Monday, October 5, affecting 325,000 claimants in supported housing and temporary accommodation. The UK government announced that residents in these settings will “keep more of what they earn” when they take up work or increase their hours.
End of the cliff edge
In an update published on October 5, the DWP confirmed people will no longer face a drop in income when increasing their working hours. Under the previous system, people living in supported housing and temporary accommodation often received help with their day-to-day living costs through Universal Credit, while support for their rent was paid separately through Housing Benefit.
The two systems had different rules about how much someone could earn before their benefits started to be reduced. The government said: “This created a cliff edge that trapped people on benefits rather than supporting them into work and financial independence.”
Aligning Housing Benefit with Universal Credit
The reforms are intended to ensure that people living in supported housing and temporary accommodation are better rewarded for taking up work or increasing their hours. The change will alter how Housing Benefit is calculated so it aligns with Universal Credit, strengthening work incentives for more than 325,000 residents in supported housing and temporary accommodation.
