Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of benefits rules on levels of employment of residents of supported housing who have their housing costs supported through the housing benefit system.

The Department acknowledges the challenge presented by the interaction between Universal Credit and Housing Benefit for those working and living in supported housing as the two systems were never intended to run alongside one another.

People in receipt of Housing Benefit are always better off in work. The income taper in Housing Benefit ensures people in work are better off than someone wholly reliant on benefits. In addition to any financial advantage, there are important non-financial benefits of working. These benefits include learning new skills, improved confidence and independence as well as a positive effect on an individual's mental and physical health.

We are working to gain a broader understanding of the impact of benefit rules in Housing Benefit on residents of supported housing who are in employment including the impact on different claimant groups.

After a successful bid to the Labour Market Evaluations and Pilot Fund, we are designing a proof of concept in conjunction with West Midlands Combined Authority. The voluntary PoC will test financial support for eligible 18–24-year-olds living in commissioned supported housing who move into work or increase their working hours and cease receiving Universal Credit. They will receive a top-up payment for 6 months. We are hopeful that this will provide new insight to inform future policy.

Alongside the pilot, officials will continue to work to build our understanding of this topic and to impact future policy options.