UK residents can now work more without losing housing support — Govt

Starting October 5, 2026, more than 325,000 people residing in supported housing and temporary accommodation across the United Kingdom will be able to work additional hours without experiencing a sudden drop in their housing support, thanks to new government rules. The Department for Work and Pensions announced these changes, which are particularly beneficial for young individuals entering the workforce for the first time. These individuals had previously faced financial challenges when increasing their working hours.

Under the previous system, some residents received Universal Credit for daily living expenses, while their housing support was provided separately through Housing Benefit. Since the two benefits followed different earnings rules, some people could find themselves in a worse financial position even after earning more. The new rules adjust how Housing Benefit is calculated for working-age claimants living in supported housing and temporary accommodations.

This change aligns the treatment of earnings with that of Universal Credit, ensuring a smoother transition for those entering the workforce.

Centers for Youth Homelessness charity Centrepoint's CEO, Seyi Obakin, praised the new regulations as a "landmark development" for young people. He shared that many had expressed feeling "trapped" in their current situations, unable to increase their work hours or change jobs without facing negative financial consequences. The changes will allow young people to earn more and pursue their career goals without the previous financial barrier.

Emma Haddad, the CEO of St Mungo’s, a charity that saw numerous cases of residents being forced to choose between working and maintaining their accommodation, also commended the reforms. She highlighted that the previous system could withdraw support so sharply that some residents were worse off when working more.

Prime Minister Andy Burnham emphasized that people should not have to choose between having a roof over their heads and the ability to work. He stated that the reforms would help people retain more of their earnings while providing greater financial security. The Minister for Social Security and Disability, Sir Stephen Timms, acknowledged that the previous system had discouraged some residents from working and that the new changes would ensure that working more would always leave people better off than relying solely on benefits.

The government introduced five new earned-income disregards for working-age Housing Benefit claimants in supported housing and temporary accommodations. These disregard values are updated annually, and the government reassured that no group would be adversely affected by these changes. The regulations were introduced in Parliament on July 6, 2026, and took effect on October 5, 2026.