New DWP working hours rule from October under Andy Burnham

More than 300,000 residents in supported housing and temporary accommodation will benefit from new Department for Work and Pensions rules coming into force in October under Prime Minister Andy Burnham. The changes ensure residents will no longer face a drop in income when increasing their working hours.

The announcement was made under the previous Sir Keir Starmer administration, but now Andy Burnham has succeeded him, it becomes the new Prime Minister's responsibility to oversee implementation from October. The DWP says the previous less generous rules for Housing Benefit created a cliff edge that trapped people on benefits rather than supporting them into work. The department estimates that 315,000 people will benefit from the changes.

Sir Stephen Timms, DWP minister, said: "The system we inherited was actively pushing some of the most vulnerable residents away from work rather than towards it. These changes fix that - ensuring residents can keep more of what they earn so that taking a job or increasing hours always pays better than benefits."

He added: "This announcement delivers on a commitment made in our Autumn Budget and forms part of the government's wider plan to reform the welfare system - tearing out the barriers that have trapped people in dependency."

Sir Stephen continued: "We are replacing that system with one that rewards work and ensures people keep more of what they earn while protecting those who need it most."

The Housing Benefit Earned Income Disregards Regulations 2026 were laid before parliament on 6 July 2026. The new rules come into force on 5 October 2026.

Housing Benefit helps people pay rent if they are unemployed, on a low income, or claiming benefits. It is being replaced by Universal Credit, though new claims for Housing Benefit can still be made by those who have reached State Pension age or are in supported, sheltered, or temporary housing.