On 5 October 2026, the Housing Benefit (Earned Income Disregards) Regulations 2026 will be effective, bringing in five new earnings disregards and amending the Housing Benefit Regulations 2006.

The CIH has said that these alterations will now mean that households who move into temporary accommodation will not be advised to leave employment, and those living in supported accommodation can make meaningful steps to advance their lives without the possibility 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in temporary accommodation and supported housing to remain in or find work, with housing benefit only starting to be withdrawn once claimants’ earnings mean their universal credit standard allowance has tapered to zero.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.”