The Department for Work and Pensions has given the green light to a long-anticipated overhaul of benefits designed to increase the financial appeal of taking up work, although recipients will not see the changes until late 2026.

This announcement came after Darlington MP Lola McEvoy raised the matter in the House of Commons, asking when the new earned income disregards would take effect.

In a parliamentary response, minister Stephen Timms confirmed the reforms are slated to begin from Autumn 2026.

The minister outlined that these disregards will enable a more seamless shift from Universal Credit to Housing Benefit for those living in Supported Housing and Temporary Accommodation as they commence work or boost their income, ensuring that employment continues to pay.

The new disregards will apply from Autumn 2026. This requires changes to legislation along with updates to local authority computer systems.

Preparation work has already begun, with engagement with stakeholders aimed at ensuring the rollout meets the needs of those affected.

This is backed by communication plans to help local authorities, housing providers and charitable groups ensure eligible claimants are aware of and can take advantage of this reform.

What changes to Housing Benefit are arriving in 2026?

The reform, first announced in last year’s Autumn Budget, will impact those claiming Housing Benefit while living in supported accommodation or temporary housing.

Essentially, the new rules will allow claimants to keep a larger share of their wages, reducing the risk of being financially worse off when taking on extra shifts or starting a new job.

However, the delay until Autumn 2026 reflects the scale of the overhaul needed, encompassing both fresh legislation and updates to local authority technology systems.

Officials say they have already begun working alongside councils, housing associations and voluntary groups to prepare for the switch, along with plans to clearly communicate with those who stand to benefit.

While the policy has largely been welcomed as a step towards smoother benefit transitions, questions remain about whether the timeline is sufficient for those currently struggling with the cost of living.