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Changes to Housing Benefit Rules for Supported Housing Residents

Changes to Housing Benefit Rules for Supported Housing Residents

Changes to Housing Benefit Rules for Supported Housing Residents

Thursday, July 16, 2026

Five new “Earned Income Disregards” are to be introduced in upcoming changes for working-age Housing Benefit claimants, due to take effect from 5 October 2026.

The reforms, introduced as part of Housing Benefit (Earned Income Disregards) Regulations, are designed to remove long-standing barriers for those in supported or temporary accommodation from taking on extra work or earning additional income.

Under current system, claimants face a cliff-edge problem, whereby earning anything other than a small amount of income may leave them cut off from eligibility for rent payment through Housing Benefit. The new regulations will bring Housing Benefit rules more closely into line with Universal Credit, allowing residents to retain more of what they earn before their benefits are reduced.

The new sums to be disregard in calculation of earnings for Housing Benefit claimants are as follows:

  • a single claimant who has not attained the age of 25 years, £61.41;
  • a single claimant who has attained the age of 25 years, £77.73;
  • a member of a couple, where both members of the couple have not attained the age of 18 years, £97.33;
  • a member of a couple, where both members of the couple have not attained the age of 25 years, £61.53;
  • a member of a couple, where at least one member of the couple has attained the age of 25 years, £119.70.

The full policy update can be found here.

For more on this subject, you can watch BHT Sussex’s webinar from the Frontline Network Annual Conference 2025, looking at their project Accommodation for Work. You can watch the full webinar here.

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