Housing Benefit and Universal Credit: Young People
The question
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to reform the interaction between Universal Credit and Housing Benefit for young people in supported accommodation to remove disincentives to work.
Answered by Sir Stephen Timms
The Department acknowledges there is a challenge presented by the interaction between Universal Credit and Housing Benefit for those residing in Supported and Temporary Accommodation and receiving their housing support through Housing Benefit. The department is considering the issue carefully in partnership with stakeholders.
Maintaining Housing Benefit for customers in this type of housing has meant that they are not subject to the same restrictions that apply in general needs housing. We have taken this approach in recognition of the higher costs that can be associated with these types of housing.
Currently, a broad spectrum of customers receive their rent support through Housing Benefit. This includes pensioners, those resident in Supported or Temporary Accommodation as well as those customers who have not yet migrated to Universal Credit. Any amendment to the Housing Benefit taper rate would apply to all these groups.
Therefore, there are no plans to align the Housing Benefit taper with that of Universal Credit. The two benefits have different earnings rules, however, both include tapers that ensure that all customers are better off working than wholly reliant on benefits.
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