Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential merits of reducing the Housing Benefit taper rate to 55 per cent for people living in supported accommodation in work.

The Department recognises the challenge arising from the interaction between Universal Credit and Housing Benefit for residents in supported and temporary accommodation.

A wide range of customers currently receive rent support through Housing Benefit, including pensioners, residents in supported or temporary accommodation, and those who have not yet migrated to Universal Credit. Any amendment to the Housing Benefit taper would therefore apply across these groups.

The Housing Benefit income taper ensures that people in work are better off than those wholly reliant on benefits, and it only applies to those with earnings. However, the treatment of earnings in Housing Benefit is less generous than under Universal Credit. Consequently, while customers in supported accommodation are better off working than not working, some may face disincentives to increase their hours to maintain Universal Credit entitlement.

The Department is considering options to improve work incentives for residents of supported and temporary accommodation, taking account of stakeholder views. Any future decisions on housing support will be made in the round, prioritising measures that best meet Government objectives within the current fiscal environment.

It remains our priority to ensure that those who can work are supported to enter and sustain employment.