DWP Universal Credit and Housing Benefit income rules change for supported housing residents, Digi Mart USA News (United Kingdom): New Department for Work and Pensions (DWP) income regulations have come into effect for more than 300,000 benefits claimants. The change, introduced a month ago, is now operational following an October amendment to legislation under Labour Party leader Andy Burnham.
Under the new rules, more than 325,000 residents in supported housing and temporary accommodation will no longer face a reduction in income when increasing their working hours. The previous system meant that people living in supported housing and temporary accommodation often received assistance with their day-to-day living costs through Universal Credit, while support for their rent was paid separately through Housing Benefit.
The two systems had differing rules on how much someone could earn before their benefits began to be reduced, according to a report by Birmingham Live. For those receiving Housing Benefit, those rules were less favourable than for people whose support was provided entirely through Universal Credit.
As a result, some claimants who entered work or increased their hours could see their Housing Benefit cut more rapidly.
Mr Burnham, the Makerfield MP, said: “People should never have to choose between keeping a roof over their head or being able to work. But the system has been rigged against some of the very people trying their hardest to get on, particularly young people starting out, who are being left worse off for earning more.
“We’re putting that right through a common-sense change that will help people keep more of what they earn. This is what progressive welfare reform looks like: helping people into work and giving families the security and breathing space they need to get on.
That’s how we make Britain better off.”
Emma Haddad, Chief Executive of St Mungo’s, said the charity had long campaigned for the change. “We absolutely welcome this landmark moment in removing barriers to work for people living in supported accommodation.
For many people, work is a way to build up financial resilience and independence and supports with maintaining and sustaining a home.
“But for people living in supported housing, work has often felt out of reach. It is reasonable for benefits to reduce as earnings rise; however, the system that is being replaced withdrew support so sharply that people were left worse off by working more.
We have seen heart-breaking cases where people had to choose between earning and keeping their accommodation because of this perverse anomaly in the benefits system.”
Haddad continued: “This change will allow more people to use their skills, which we know has positive impacts on their health and wellbeing and increases connection with communities, all of which are vital steps in the recovery from homelessness.”
