Major Housing Benefit rules change will encourage 325,000 more people into work

A major change to Housing Benefit rules took effect on October 5, removing a “cliff edge” that could leave some people worse off when taking on more work or increasing their hours. The update affects working-age Housing Benefit claimants living in supported housing and temporary accommodation. Officials say it aligns how Housing Benefit is calculated more closely with Universal Credit, so earnings don’t cause housing support to fall faster than income rises. The government expects the change to benefit nearly 50,000 young people. Under the previous system, Universal Credit and Housing Benefit used different earning rules, sometimes swallowing extra work pay with reduced support. Prime Minister Andy Burnham and Social Security minister Sir Stephen Timms said the reform removes a barrier to work.