More than 325,000 people living in supported housing and temporary accommodation in the United Kingdom will be able to increase their working hours without facing the previous “cliff edge” reduction in housing support under new rules that came into force on Monday.
The Department for Work and Pensions announced the changes in a statement issued on Monday, October 5, 2026.
The reforms are expected to particularly affect nearly 50,000 young people starting out in employment, who charities said had previously faced difficult financial choices when taking on more work.
Under the previous system, some residents received Universal Credit to help with day-to-day living costs, while their housing support was paid separately through Housing Benefit.
Because the two benefits operated under different earnings rules, some people could see their Housing Benefit reduced more quickly when they started work or increased their hours.
As a result, residents could sometimes be financially worse
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