New Housing Benefit rules that the UK government said would end the sharp loss of income residents of supported housing and temporary accommodation faced when they increased their working hours took effect on Monday 5 October 2026, according to a Department for Work and Pensions press release. Under the previous system, day-to-day living costs were often covered through Universal Credit while rent support came through Housing Benefit, whose less generous earnings rules could leave some residents worse off despite earning more, the department said.

The regulations change how Housing Benefit is calculated so it aligns with Universal Credit, introducing five new earned income disregards for working-age claimants in supported housing and temporary accommodation, with values to be updated annually. The department said more than 325,000 residents would benefit, including nearly 50,000 young people starting out in employment, and that no group is made worse off. Ministers and charity leaders at Centrepoint and St Mungo's welcomed the change.

The release also cited wider government plans, including a £3.5 billion investment in employment support and personalised help through Connect to Work.