Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will reduce the Housing benefit taper rate to 55% for those living in supported accommodation.

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

The Department acknowledges there is a challenge presented by the interaction between Universal Credit and Housing Benefit for those living in Supported Housing and Temporary Accommodation and receiving their housing support through Housing Benefit. The department will consider the issue carefully in partnership with stakeholders.

Like Universal Credit, Housing Benefit has an income taper. As Housing Benefit may be claimed by those both in work and out of work, there are no rules around the number of hours that someone may work; instead, there are income tapers which apply.

The income taper in Housing Benefit ensures people in work are better off than someone wholly reliant on benefits. In addition to any financial advantage, there are important non-financial benefits of working. These benefits include learning new skills, improved confidence and independence as well as a positive effect on an individual's mental and physical health. However, the treatment of earnings in Housing Benefit is less generous than that of Universal Credit. Therefore, although customers living in Supported Housing are better off working than doing no work at all, they can be financially better off limiting the hours they work to ensure they retain a small amount of Universal Credit entitlement.

Changing the current rules would require a fiscal event and funding at a Budget. As funding is required to allow a change, any future decisions will take account of the current fiscal context.