Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant UIN 87565 what steps his Department is taking to address the challenges it has identified in the interaction between Universal Credit and Housing Benefit for young people in supported accommodation, and whether a timetable has been set for considering potential reforms.

As confirmed at Autumn Budget, we will be introducing new earned income disregards for those in receipt of Housing Benefit and live in Supported Housing and Temporary Accommodation. This will help smooth the transition between the Universal Credit and Housing Benefit, and reduce the financial cliff edge for individuals in Supported Housing and Temporary Accommodation as they move into work or increase their hours.

This will require legislative changes and be accompanied by IT changes made to local authority IT systems. In preparation for this, we have already begun engagement with stakeholders to ensure that the implementation meets the needs of those affected. This is accompanied by clear communications to support local authorities, housing providers and third sector organisations to ensure that eligible customers are aware of and able to utilise this change.

The new disregards will be in place from Autumn 2026.