Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of increasing the number of weeks that people who live in supported accommodation and who have increased their working hours above 16 hours can claim extended housing benefit payments for.
Most working-age customers residing in supported housing now receive Universal Credit for their daily living costs and Housing Benefit for their rent support. Customers in receipt of Universal Credit are not eligible for extended rent support as Universal Credit is both an in-work and out-of-work benefit.
Like Universal Credit, Housing Benefit has an income taper. As Housing Benefit may be claimed by those both in work and out of work, there are no rules around the number of hours that someone may work; instead, there are income tapers which apply.
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. However, Housing Benefit treatment of earnings is less generous than that of Universal Credit. Therefore, although customers living in Supported Housing are better off working than doing no work at all, they can be financially better off limiting the hours they work to ensure they retain a small amount of Universal Credit entitlement.
Notwithstanding these positive outcomes from work, the Department acknowledges there is a challenge presented by the interaction between Universal Credit and Housing Benefit for those residing in Supported Housing and Temporary Accommodation and receiving their housing support through Housing Benefit. The department will consider the issue carefully in partnership with stakeholders.