Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will (a) increase the threshold at which the earnings taper is applied to housing benefit and (b) reintroduce a universal credit work allowance for young people living in supported accommodation.

The income taper in Housing Benefit and the earnings taper in Universal Credit are designed to ensure that work always pays. They ensure that benefit is not reduced on a pound for pound basis. Whilst receiving Universal Credit, a claimant’s income is disregarded for Housing Benefit purposes and there is no change to the amount they receive.

If their Universal Credit claim ends, then their Housing Benefit claim is reassessed. Some of their earnings will be disregarded based on their personal circumstances. When a claimant’s income, after the disregards have been applied, is higher than their applicable amount, Housing Benefit is reduced by a fixed taper of 65p for every £1 of additional income, meaning that they will always be better off in work.

The applicable amounts in Housing Benefit are made up of personal allowances, paid according to age and family status, added to premiums which are designed to help particular groups of people who may have additional expenses. These amounts are uprated each year alongside other benefits.

Work allowances are already available to Universal Credit claimants who have children or limited capability for work, including those living in supported accommodation. Work allowances provide additional incentives and support for these particular groups who may find it more difficult to get into, or progress in work.