New housing-benefit rules ease the penalty for taking more paid work

Taking more hours at work should help someone rebuild their life. For some people in supported housing, it meant a frightening choice about whether they could still afford their accommodation.

Working Chance described one woman who had fled domestic abuse and wanted to return to full-time employment. Warnings about higher housing costs left her anxious about taking that step.

New rules came into force on 5 October, allowing eligible working-age residents in supported and temporary accommodation to keep more earnings before Housing Benefit is reduced. St Mungo’s, which campaigned for the change, welcomed it.

Official guidance says the new allowances apply automatically to qualifying claims, with no minimum working-hours requirement.

They do not remove every reduction in benefits as earnings rise, and gains depend on individual circumstances. It is too early to know how many more people will enter work.

What has changed is the calculation itself: more of someone’s wages can now be left out when assessing their help with rent.

Sources

• Department for Work and Pensions — new rules take effect
• Working Chance — how the previous rules affected one woman
• Department for Work and Pensions — eligibility and limits