Universal Credit Housing Benefit changes 2026 start for 325,000

New Housing Benefit rules came into force on Monday 5 October 2026, changing how earnings are counted for working-age people in supported housing and temporary accommodation. The government said the Universal Credit Housing Benefit changes 2026 will help more than 325,000 residents, who will no longer face a drop in income when they increase their working hours. Claimants in other types of housing, and those above Pension Credit age, are not covered.

How the DWP benefit changes 2026 work

According to the Department for Work and Pensions (DWP), residents in these settings often get day-to-day support through Universal Credit while rent help is paid separately through Housing Benefit. The two systems had different earnings rules, and the Housing Benefit rules were less generous. Some people who took work or more hours therefore saw Housing Benefit fall quickly, leaving them worse off.

The Housing Benefit (Earned Income Disregards) (Amendment) Regulations 2026 add a new earnings disregard for working-age claimants in this accommodation. The amounts depend on age and household. A single claimant under 25 has £61.41 disregarded and one aged 25 or over has £77.73, a gap of £16.32. For a couple, £97.33 applies if both are under 18, £61.53 if one is 18 or over but both are under 25, and £119.70 if either is 25 or over, a gap of £58.17 between the last two.

Sir Stephen Timms, Minister for Social Security and Disability, said the change means “working more hours leaves people better off than staying on benefits”. The DWP said no group is made worse off, and that any variation in immediate gain reflects how existing Universal Credit and Housing Benefit tapers operate.

Housing Benefit eligibility rules 2026 and other rates

The wider rates are less eventful. GOV.UK’s proposed 2026/27 rates leave the benefit cap and Housing Benefit capital limits unchanged, while deductions for other adults living in a claimant’s home rise.

The lowest non-dependant deduction rises by 75p a week, or about 3.8%, so a household affected all year would pay about £39 more. That is our calculation from the published figures.

What happens next

The regulations were laid before Parliament at 3.00pm on 6 July 2026 and took effect on 5 October. The government said the disregard values will be updated annually, so the figures above are likely to change. The rules extend to England, Wales and Scotland, and the regulations say they amend working-age Housing Benefit only.

Northern Ireland is separate. Regulations made on 8 January 2026 and in force from 30 January fix local housing allowance for all broad rental market areas at the level determined on 31 January 2024, for the purposes of determining it in 2026.

Claimants in supported housing or temporary accommodation who work, or are offered more hours, may want to check their Housing Benefit assessment under the new disregard. They should tell the office that handles their claim about any change in earnings.

Your questions answered

What are the new benefits for 2026?

The sources describe no new benefit. The main change is the new earnings disregard in Housing Benefit for working-age people in supported housing and temporary accommodation, which the DWP says aligns Housing Benefit with Universal Credit.

Will Universal Credit rise in 2026?

The sources reviewed do not give Universal Credit standard allowance rates, so we cannot say. The proposed 2026/27 rates show Carer’s Allowance rising from £83.30 to £86.45 a week and Attendance Allowance higher rate from £110.40 to £114.60.

Who is not eligible for Housing Benefit?

The sources do not list every exclusion. They show a capital upper limit of £16,000 for Housing Benefit, with no limit for those getting Housing Benefit and Pension Credit Guarantee Credit. Capital above £6,000 is treated as producing tariff income of £1 for every £250, or part thereof.