Housing Benefit Earnings Disregard Changes From October 2026
From 5th October 2026, some working-age people who receive Housing Benefit and live in supported housing or temporary accommodation can have more of their wages ignored when their benefit is worked out. The DWP regulations covered here apply in England, Scotland and Wales; Northern Ireland introduced separate regulations on the same date. They are intended to reduce the risk of people being worse off when they move into work or increase their hours.
What changed in the Housing Benefit earnings disregard from 5th October 2026?
Some people living in supported housing or temporary accommodation receive Housing Benefit to help with their rent. They may also receive Universal Credit to help with everyday living costs. As earnings rise, Universal Credit can reduce and may eventually stop. Without extra help, the way Housing Benefit is then worked out can leave someone with less money overall, even after they earn more.
The new rules add an extra amount of earnings that is ignored when calculating Housing Benefit for eligible claimants. This is on top of the standard earnings amount that may already be ignored under the usual rules. The change applies to employed and self-employed earnings, and there is no minimum number of working hours.
Who qualifies for the Housing Benefit earnings disregard?
The extra earnings allowance is for working-age people who receive Housing Benefit and live in accommodation that meets the official rules for supported housing or temporary accommodation. Not every property described as supported housing will automatically qualify. The type of accommodation and the claimant’s circumstances must meet the rules.
The amount ignored depends on whether the claimant is single or part of a couple, their age and, for couples, the ages of both people.
Make mealtimes a little easier with Gousto
Gousto recipe boxes bring recipes and ingredients together, making it easier to plan meals at home.
Ad · We may earn a commission if you sign up through this link.
How much can the Housing Benefit earnings disregard ignore?
The Housing Benefit earnings disregard amounts below are weekly figures. They are ignored when the council works out Housing Benefit, provided the person meets the conditions. They are added to the standard earnings disregard that already applies, if the claimant qualifies for it.
Important: this is not the amount of Housing Benefit you will receive
For example, a qualifying single claimant aged 25 or over has £77.73 of weekly earnings ignored under the new rule. That does not mean their Housing Benefit goes up by £77.73. The council still works out the award using the full rules and the person’s circumstances.
What if you start work or increase your hours?
The new rules are intended to make it easier for eligible residents to take a job or work more hours without facing the same sudden drop in income. They do not mean that every pound you earn is ignored, or that your Housing Benefit will stay the same whatever you earn.
The amount of Housing Benefit you receive can still change as your earnings and circumstances change. Your Universal Credit may also change. The new earnings amounts are designed to reduce a particular problem when earnings rise, not to remove every reduction in benefit.
Do you need to do anything?
The Department for Work and Pensions says the new amounts should apply automatically to new and existing Housing Benefit claims where the claimant meets the conditions. You should still tell your council about changes to your earnings, work, household or accommodation in the usual way.
If you think the new rules apply to you but your Housing Benefit calculation does not appear to include them, contact the council that deals with your claim and ask it to check your assessment.
Does this apply across the UK?
The regulations for this change apply in England, Scotland and Wales. Northern Ireland has its own separate regulations for this change, which also came into force on 5th October 2026. Read the Northern Ireland regulations for the rules that apply there rather than assuming the Great Britain amounts are identical.
Looking for a mobile plan that suits your budget?
If you’re keeping an eye on household costs, it may be worth comparing SIM-only options and checking whether Lebara Mobile has a plan that works for you.
Use code LEBARA10 at checkout
Ad · We may earn a commission if you sign up through this link.
Housing Benefit earnings disregard: frequently asked questions
What if my accommodation is not supported housing?
The new disregard is limited to accommodation that meets the legal definitions of specified accommodation or temporary accommodation. A property being described informally as supported housing does not automatically mean it qualifies, so ask your council to check the accommodation category if you are unsure.
Will my Housing Benefit stay the same if I earn more?
Not necessarily. The disregard is designed to reduce a specific drop in income for eligible residents, but it does not freeze a Housing Benefit award or remove every reduction as earnings rise. Your council assesses your claim using your earnings and circumstances.
Does the disregard apply to self-employed earnings?
The new disregard can apply to earnings from employed or self-employed work, provided the claimant meets the accommodation and other eligibility conditions.
What if the new disregard is missing from my assessment?
The disregard should apply automatically to eligible new and existing claims. If your calculation does not appear to include it, contact the council that administers your Housing Benefit and ask it to review the assessment, giving details of your work, earnings and accommodation.
Do I still need to tell my council if my wages change?
Yes. Continue to report changes to earnings, employment, household circumstances or accommodation to your council as usual.
This article gives general information, not a decision about an individual claim. The amount of Housing Benefit someone receives depends on their circumstances and the rules that apply to them. Check with your council if you need an answer about your own claim.
