Overview
- The regulations came into force on Monday 5 October 2026, changing how Housing Benefit is worked out for people in supported housing and temporary accommodation.
- More than 325,000 residents, including about 50,000 young people starting work, are covered by the change so they no longer face a sharp drop in income when they increase hours.
- The reform adds five earned‑income disregards to Housing Benefit and matches its taper to Universal Credit so benefits are reduced more gradually as earnings rise.
- Ministers say no group will be worse off, disregard values will be updated each year, and the measure is part of wider plans that include £3.5bn for employment support and £4bn for homelessness.
- Charities such as Centrepoint and St Mungo’s welcomed the move, saying it removes a barrier that forced some people to choose between earning more and keeping housing support.