Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether his Department has made an assessment of the potential fiscal impact of (a) increasing the Housing Benefit earnings disregard from £5 to £57 and (b) reducing the taper rate from 65 per cent to 55 per cent for young people living in supported accommodation.

We acknowledge there is a challenge arising from the interaction between Universal Credit and Housing Benefit, particularly for young people living in supported and temporary accommodation, including the different income tapers used by each benefit.

Currently, a broad spectrum of customers receive their rent support through Housing Benefit. This includes pensioners, residents in Supported or Temporary Accommodation and customers who have not yet migrated to Universal Credit. Any amendment to the Housing Benefit taper rules would apply to all these groups.

We are considering options to improve work incentives for residents of supported housing and temporary accommodation, while considering the views of stakeholders. Any future decisions on DWP housing support will be taken in the round and measures which best meet Government goals, within the current fiscal environment, will be prioritised.

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