By Alessandra Sciarra, Head of Policy and Public Affairs, Depaul UK
“The changes to Housing Benefits have made me feel more confident about getting a job. Before, I was worried that if I started working, I wouldn’t be able to afford my rent. Knowing there is more support available makes taking that step into work feel a lot less risky and gives me more confidence about becoming financially independent.”
For me, these words from a young person we support capture why the changes to Housing Benefit are so important. Starting a job is a big step. Worrying about whether you will still be able to afford your rent can make it feel much harder.
On 5 October 2026, new Housing Benefit rules came into force for eligible working-age residents in supported housing and temporary accommodation. They allow residents to keep more of their earnings before those earnings affect their housing support.
Depaul UK campaigned for this change through Make Work Pay, alongside St Mungo’s, Centrepoint and other organisations from the Youth Homelessness Collective. We shared young people’s experiences with MPs, ministers and officials, explaining how the rules could hold them back when they were ready to work.
We’re delighted that the campaign has helped bring about this change. I hope it will give more young people the confidence to start a job or increase their hours without worrying about how they will pay their rent.
What has changed in Housing Benefit?
People living in supported accommodation can receive Universal Credit to help with everyday living costs and Housing Benefit to help pay their rent. But the two benefits have used different rules for calculating how earnings affect these payments.
Under the previous rules, taking a job or working more hours could leave some residents worse off. As their earnings rose, reductions in their benefits could leave them with less money overall, even though they were earning more.
The new rules allow eligible residents to earn more before their Housing Benefit is reduced. This should make it financially easier to start work or increase their hours. The amount of support each person receives will still depend on their circumstances, so young people will need clear advice about what the changes mean for them.
Why a safe home is important when starting work
When I visited our London services, I heard from staff about young people who wanted to work more but were worried about what it would mean for their rent. Graeme, our London Floating Support Manager, put it clearly:
“Make Work Pay could prove to be a real game-changer, especially for young people in employment, as I have seen too many young people get into huge debt just for trying to better their lives.”
Our staff were helping young people work towards their goals, while the benefit rules could make those same goals harder to pursue.
A safe home gives a young person somewhere to prepare for a shift, rest afterwards and think about their future. Our supported accommodation brings that security together with wrap-around support.
The next step will look different for everyone. It might be an apprenticeship, further education or time to focus on their health. Our role is to listen and help young people work towards what’s important to them and their future.
That is why I welcome this reform. It responds to a barrier young people and frontline staff have been telling us about.
Helping young people take their next step
We will be talking through the changes with the young people we support. They need to understand how a job or additional hours would affect their income, what they need to report, and who can help check the calculation.
Some will also want help with applications, interviews or travel. Others will need more time before they feel ready to work. Everyone deserves a safe home, whatever stage they are at.
We also need to look beyond starting a job. Employment does not automatically make housing affordable or mean someone no longer needs support. Moving on from supported accommodation takes considerate planning around rent, bills and the help needed to keep a home.
As we launch our 2026–2030 strategy, preventing homelessness and stopping it from happening again are central to our work. I hope this change will help more young people build the financial security that supports lasting independence.
I’ll be listening to young people as the changes take effect. Do they understand the new rules? Do they feel more confident about work? Can they take the opportunities they want?
The young person’s words at the start of this piece give me reason to be hopeful. I want more young people to feel that same confidence about their future.