Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he plans to review the 65p Housing Benefit taper rate; and if will make an assessment of the potential merits of bringing that rate in line with the Universal Credit taper rate in incentivising young people into work.

There are no plans to bring the Housing Benefit taper in line with that of Universal Credit. The two benefits have different treatment of earnings rules, both include tapers that ensure that all claimants are better off working than wholly reliant on benefits.

At present, there is a broad spectrum of claimants receiving their rent support through Housing Benefit; those resident in supported housing or temporary accommodations as well as those claimants who have not yet migrated to Universal Credit. Any amendment to the Housing Benefit taper rate would apply to all of these groups and could result in Housing Benefit outstripping the provision provided by Universal Credit in some circumstances.

The Department acknowledges the challenge presented by the interaction between Universal Credit and Housing Benefit for those working and living in supported housing and temporary accommodation. This issue is a complex one, and eradicating the financial cliff edge some individuals face as they incrementally increase their earnings could not be achieved by simply aligning the taper rates within the two benefits. Officials are working to explore this issue further considering the impact including impact on different groups and consider policy options.

It remains the department’s priority to ensure that those who can work are supported to enter the labour market and to sustain employment.