Legislative changes coming into effect in October 2026 will create life changing opportunities for people living in supported (SA) or temporary accommodation (TA).
For people who are currently unable to work, i.e. those who’s income is solely from benefits, usually for mental or physical health reasons, their housing costs are met by the state.
Claims for housing costs for private rented rooms and flats are part of a universal credit claim which comes from central government funds, whereas for the more vulnerable (SA) or emergency (TA) cases, housing costs are paid by Housing Benefit, which is decentralised and comes from local council funds.
Our Access Project offers supported accommodation, meaning that we offer full-time support to every resident across all areas of their lives and we rent properties from private landlords then effectively sub-let to our tenants. One of the first acts of support we offer is to help them create their housing benefit claim to ensure their rent is covered. N.B. The rent we charge is in line with the local housing allowance (LHA) and not a penny more.
During my time as an Asset Coach, it was a constant source of frustration to me that my job involved helping keen people prepare to re-enter the work force, but the support was always caveated by the fact that as soon as they started earning their housing benefit would drop, leaving a shortfall that would be covered by their wages.
Remember, for the people who live in our supported accommodation, the trauma and stress of homelessness and poverty are short memories, and it takes time to adjust both the mindset and body chemistry enough to regain full executive function.
The benefit system is a huge, complicated machine that moves slowly in comparison to a zero hours contract that could net a couple of hundred pounds in one week and nothing the next.
What this means is that by the time the system catches up, even with the best will in the world, the money is gone and debts begin to accrue.
Full universal credit for an adult over 25 is currently £424.90 per month (this equates to £13.97 a day) from which the utility and phone contract bills must be paid with the remainder left to cover a hopefully healthy diet. A few extra pounds on top of this, at the very least can improve a standard of living, and at best allow for the enjoyment of a hobby.
Universal credit payments also taper when someone starts back in employment, but there is a buffer of earning £427 a month before that reduction begins.
The new legislation “The Housing Benefit (Earned Income Disregards) Regulations 2026” which comes into force in October 2026, creates a similar buffer of £336.83 before Housing Benefit starts to taper.
The emotional and mental health value of working up to 26 hours a month cannot be underestimated, and to create an additional income of £336.83 a month without penalty gives a person the option to start to think about the future, whether that’s by clearing debt or saving towards a deposit, this change in legislation cracks the doorway to independent living a little wider.
