People living in supported accommodation will soon be able to work more without losing access to Housing Benefit, thanks to changes introduced by Government this week.
These changes, which will take effect in October 2026, herald a huge win for the sector. Providers have long called for change to the double standard in social security policy which previously meant that those living in homelessness accommodation could be financially worse off if they took paid employment.
The new Housing Benefit (Earned Income Disregards) Regulations aim to address a long-standing “cliff edge” problem, in which people in supported housing are cut off from rent payments through Housing Benefit if they take more than a small amount of paid work. This is particularly problematic as rents for supported housing are usually higher than market value, meaning any extra income earned through employment is quickly outweighed by the extra costs of rent.
Five new earned income disregards have been introduced in the regulations focused on improving the rights of people living in “specified or temporary accommodation”. This will mean that people will be able to earn more before their Universal Credit and Housing Benefit payments start to be tapered down.
We expect that Government will share more detail about precisely what this means for individual earners in due course, and we will share any resources to help explain the changes to those you work with once they emerge. In the meantime, details of the amendments can be found here.
We are pleased to see Government taking steps to ensure that people experiencing homelessness are no longer discouraged from working. This is a change that Homeless Link and our members have campaigned for over many years, including Brighton Housing Trust, YMCA England & Wales, and through Centrepoint's Make Work Pay campaign.
Rick Henderson, CEO of Homeless Link comments:
“This is a welcome change that make it considerably easier for people living in supported accommodation to get into work and build their careers. For years, the efforts of our members to support people trying to take their next steps and move on from homelessness were being undermined by this unfair and ineffective policy.”
“The changes announced today prove positive social security reform can be part of the solution to ending homelessness. We hope moving forwards that the Government recognises the wider potential for utilising the social security system to start turning the tide on rising homelessness, including by adjusting Local Housing Allowance rates.”
