Overview
- The Department for Work and Pensions laid the Housing Benefit (Earned Income Disregards) Regulations in Parliament on Monday 6 July and says the rules will come into force in October, with the official start date given as 5 October.
- The regulations create five earned income disregards for working-age claimants in supported housing and temporary accommodation so some earned pay is ignored when Housing Benefit is worked out.
- Officials say the change removes a long-standing ‘cliff edge’ where Universal Credit offered larger work allowances than Housing Benefit, which could leave tenants worse off for taking more hours or prompt landlords to discourage employment.
- The government estimates the reform will benefit roughly 300,000–315,000 vulnerable residents and says disregard values will be updated each year and no group will be made worse off by the change.
- The measure is part of a wider package of work-focused reforms, including Universal Credit rebalancing, Right to Try rules, the Connect to Work programme and 1,000 Pathways to Work advisers, and could increase take-up of paid work among supported-housing tenants while requiring careful implementation and yearly review.