Supported housing residents to keep more of what they earn under new rules

The government has announced that people living in supported housing will be able to keep more of what they earn when they start work or increase their hours.

The changes are due to come in from October 2026.

The aim is to reduce how quickly housing benefit is reduced when someone’s income goes up, so people are not left worse off when they try to work.

Here is what it means for you.

What has been announced

Under the new rules, people in supported housing will be able to keep more of their earnings before their housing benefit is reduced.

At the moment, some people see their housing benefit drop quite quickly when they start working or take on extra hours.

This can mean that extra work does not always lead to more money overall.

The government says the new system will reduce that effect.

What supported housing means

Supported housing is housing for people who need extra help to live safely and independently.

It can include people who are:

• leaving homelessness
• living with a disability or long-term health condition
• recovering from addiction
• leaving care or prison
• escaping domestic abuse or unsafe situations

Support is usually built into the housing itself.

What the change means for your money

The change is designed to make it easier to move into work without losing support too quickly.

If you start work or increase your hours, your housing benefit may reduce more slowly than it does now.

That could mean you keep more of what you earn for longer.

For some people, this may make working or increasing hours feel more worthwhile.

What is not changing

The change does not mean everyone will be better off.

It does not mean housing benefit will not change at all if your income goes up.

And it does not remove the need to check how your own situation might be affected.

Your income, rent and personal circumstances will still matter.

Why this change is happening

The government says the current system can create what is known as a “cliff edge”.

This is where people can lose support quickly when their earnings increase.

That can make it feel like working more does not always pay.

The aim of the change is to make that transition smoother.

What you can do next

You do not need to make any immediate changes.

But if you are thinking about starting work or increasing your hours, it may help to get advice before anything changes.

You can speak to your housing officer or support worker, or speak to us if you are unsure how it might affect your rent, bills or budget.