CIH welcomes new regulations around temporary accommodation

The government has laid down new housing benefit legislation which will help more than 300,000 residents in supported housing and temporary accommodation no longer face a sharp reduction in their income if they chose to increase their working hours. 

The Housing Benefit (Earned Income Disregards) Regulations 2026 will come into force on the 5 October this year, introducing five new earnings disregards and amending the Housing Benefit Regulations 2006.

These changes will now mean that families who move into temporary accommodation won't be advised to leave employment, and those living in supported accommodation can take confident and positive steps to build their lives without fear of a financial cliff edge or the prospect of leaving their home.  

Sam Lister, CIH policy lead on welfare, housing law and the private rented sector, said: "CIH highlighted this employment trap to the Department of Work and Pensions prior to the Budget, and we're pleased to see it finally being made law.

"These new regulations will allow residents in temporary accommodation and supported housing to remain in or find work, with housing benefit only starting to be withdrawn once claimants' earnings mean their universal credit standard allowance has tapered to zero.

"We'd urge government to keep building on this momentum, working towards a future where everyone has the stability to plan their working life with confidence."

You can find the full legislation here.