The Government has announced that new rules coming into force today, Monday 5th October 2026, will change how Housing Benefit is calculated for residents in supported housing and temporary accommodation - meaning they can keep more of what they earn when they start work or increase their hours, without facing a drop in their Housing Benefit income.
What the new rules do:
- The reforms will help make sure that people living in supported housing and temporary accommodation are better rewarded for taking up work or increasing their hours
- The Housing Benefit (Earned Income Disregards) Regulations 2026 come into force from 5 October 2026. These regulations will change how Housing Benefit is calculated so it aligns with Universal Credit
- Five new earned income disregards are being introduced for working-age Housing Benefit claimants in supported housing and temporary accommodation
- Disregard values will be updated annually. The Government states no group is made worse off by the change; any variation in the immediate financial gain reflects how existing Universal Credit and Housing Benefit tapers already operate
The full press release is available here.
The DWP have been developing resources for frontline workers and individuals affected by the Housing Benefit change which will include a benefits calculator to help people understand the cost impact on them. It’s important to note that the calculation is based on earnings and circumstances, rather than the historic 16-hour cut off.
We will update this page with a link to the calculator once it is published.