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Thousands on Housing Benefit to keep more cash from earnings under new DWP rules

The DWP will allow around 315,000 people claiming The Housing Benefit to keep more earnings under new rules effective October 5, 2026, targeting residents in supported housing and temporary accommodation.
Disability Minister Sir Stephen Timms stated current rules created a financial "cliff edge" that pushed vulnerable residents away from work rather than toward employment.
Regulations introduce five new earned income disregards, aligning The Housing Benefit calculations with Universal Credit to remove sharp support drops previously faced by working claimants.
Fulfilling a commitment from the Autumn Budget, Timms said, "We are replacing that system with one that rewards work," as part of broader government employment reforms.
Earned income disregard amounts will be updated annually, with the DWP confirming no claimant will be financially worse off and that increased work always leaves individuals better off.

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DWP rules - Thousands on Housing Benefit to keep more cash from earnings

More than 300,000 people claiming Housing Benefit will be able to keep more of their earnings under new Department for Work and Pensions (DWP) rules. Thousands will be affected in the North East

4 days ago·County Durham, United Kingdom

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