Supported housing welfare changes: residents keep more of what they earn

Q: How much of a resident’s earnings is ignored?

A single person under 25: £61.41; A single person aged 25 or over: £77.73; A member of a couple where both are under 18: £97.33; A member of a couple where both are under 25: £61.53; A member of a couple where at least one is 25 or over: £119.70. The amounts are from the regulations (new paragraph 18 of Schedule 4 to the Housing Benefit Regulations 2006). Housing Benefit works on weekly amounts. The regulations set no minimum number of hours.

Updated 3 Nov 2026 · Sources

The short answer

From 5 October 2026, working-age residents of supported housing and temporary accommodation keep more of what they earn before their Housing Benefit goes down. Five new earned income disregards, from £61.41 to £119.70 depending on age and household, are left out of their earnings when Housing Benefit is worked out. There is no minimum number of hours, and the government says no group is worse off.

Residents of supported housing get help with their rent through Housing Benefit, not Universal Credit. Until October 2026, Housing Benefit fell sharply as soon as a resident earned more than a small amount, so taking a job or more hours could leave them worse off. The government called this a “cliff edge”.

What this means for you: residents who were afraid a job would cost them their home can now take one with less risk. Tell residents and keyworkers, and update any advice about work in your resident handbook and support plans.

What changed on 5 October 2026?

The Housing Benefit (Earned Income Disregards) (Amendment) Regulations 2026 (opens in a new tab) were made on 6 July 2026 and came into force on 5 October 2026. They add five new earned income disregards: amounts of a resident’s earnings that are ignored when their Housing Benefit is worked out. The government says (opens in a new tab) the change covers more than 325,000 residents, including nearly 50,000 young people, lines Housing Benefit up with Universal Credit, and that “No group is made worse off”.

How much of a resident’s earnings is ignored?

The five new earned income disregards in Housing Benefit
Who	Earnings ignored
A single person under 25	Earnings ignored £61.41
A single person aged 25 or over	Earnings ignored £77.73
A member of a couple where both are under 18	Earnings ignored £97.33
A member of a couple where both are under 25	Earnings ignored £61.53
A member of a couple where at least one is 25 or over	Earnings ignored £119.70

The amounts are from the regulations (new paragraph 18 of Schedule 4 to the Housing Benefit Regulations 2006). Housing Benefit works on weekly amounts. The regulations set no minimum number of hours.

Who do the new rules cover?

Housing Benefit claimants who:

are of working age (people over State Pension age are not covered)
are in paid work, as an employee or self-employed
live in specified accommodation (which includes supported exempt accommodation) or in temporary accommodation

What should supported housing providers do?

Tell residents and keyworkers about the change, in plain words.
Remind residents that they must still tell the council when their earnings change.
Include work and training in needs assessments and support plans where residents want it.
Update the work and money sections of your resident handbook.

The National Supported Housing Standards expect residents to be supported to take up learning, volunteering, training and work where appropriate, and each to have a move-on or independence plan.

Sources

This guide is not legal advice

It sums up what the government and councils had published on the date above. The licensing regulations (the detailed law) are not made yet. On 15 October 2026 the government published them as a draft, to ask for views. The final text may change. Check the sources before you rely on a detail.