Andy Burnham said the DWP temporary accommodation benefit changes coming into force this week will let more than 325,000 people in supported housing and temporary accommodation keep more of what they earn. The new rules change how Housing Benefit is calculated so support falls more gradually as working hours rise.
Burnham called it a “common-sense change” and said people should never have to choose between keeping a roof over their head or being able to work. Under the new system, a single claimant aged 25 or over will have £77.73 of weekly earnings disregarded, while a couple with at least one person aged 25 or over will have £119.70 disregarded.
Universal Credit and Housing Benefit
Before this week, people in supported housing and temporary accommodation often received help with day-to-day living costs through Universal Credit while rent support was paid separately through Housing Benefit. The two systems used different rules on how much someone could earn before their benefits were reduced, and Housing Benefit was less generous than Universal Credit.
That gap meant some residents moving into work or increasing hours could lose Housing Benefit faster than they gained earnings, leaving them worse off despite earning more. The government said the previous arrangement created a “cliff edge”, and the new regulations are meant to bring Housing Benefit more closely in line with Universal Credit.
Florence Eshalomi and homelessness
Florence Eshalomi said the government is investing over £4 billion to end homelessness for good, and said employment is an important step in many people’s recovery. She said the intervention supports that mission by helping people into secure work or increase their earnings from work.
The new disregard amounts will rise each year in line with changes to Universal Credit, giving working-age claimants in supported housing and temporary accommodation a formula that is less likely to cut off support when pay rises. Eshalomi said the government will continue to support people in temporary accommodation by ensuring safe, stable placements are available to all who need them.
