Universal Credit
The question
To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the potential merits of (a) increasing the housing benefit earnings disregard and (b) aligning the taper rate with Universal Credit.
Answered by Sir Stephen Timms
We acknowledge there is a challenge arising from the interaction between Universal Credit and Housing Benefit, particularly for working age customers living in supported and temporary accommodation. This issue is a complex one, and eradicating the financial cliff edge some individuals face as they incrementally increase their earnings could not be achieved by simply aligning the taper rates within the two benefits.
We are considering options to improve work incentives for residents of supported housing and temporary accommodation, while taking into account the views of stakeholders. As funding is required to allow a change, any future decisions will take account of the current fiscal context.
It remains the department’s priority to ensure that those who can work are supported to enter the labour market and to sustain employment.
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