DWP new Universal Credit and Housing Benefit rule change rolled out on Monday

The Department for Work and Pensions (DWP) has confirmed a rule change for Housing Benefit and Universal Credit

The Department for Work and Pensions (DWP) has announced that a significant rule change affecting Housing Benefit and Universal Credit comes into effect from Monday. The new regulations are designed to eliminate the "cliff edge" loss of income that residents in supported housing and temporary accommodation have previously faced, reports Birmingham Live.

These reforms aim to ensure that individuals living in supported housing and temporary accommodation are better rewarded for entering employment or increasing their working hours. The DWP states the new measure will "change how Housing Benefit is calculated so it aligns with Universal Credit".

The changes will also "strengthen" work incentives for more than 325,000 residents in supported housing and temporary accommodation. The DWP told Birmingham Live: "Today's rules come alongside previous steps to help people on disability benefits who want to work into work.

"We have rebalanced Universal Credit to tackle the perverse incentives that discourage work, while giving sick and disabled people support, they were denied under the previous government and introduced the Right to Try so people can try work without fear of immediate reassessment."

Centrepoint Chief Executive Officer Seyi Obakin welcomed the announcement, saying: " This is a landmark win for young people, and we commend the government for getting this change over the line."

"For too long young people in supported housing, particularly those at the start of their careers, have had their ambitions blocked by a system that punished them for working harder. Young people told us that they often felt "trapped," unable to increase their hours, change jobs or even build savings without feeling immediately worse off, as the cost of living, rents and utility bills continued to rise.

"From October 5 a young person living in supported housing will keep far more of what they earn, so their extra hours will finally add up. The changes will mean most young people will not experience the stark financial cliff edge they once faced. Young people will be free to take on more work, chase their career goals and build the futures they want. This is what it looks like when the system works for young people, and we are hugely grateful to everyone who made it happen."