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Policy briefing, Press release | 14 July 2026

Changes to Housing Benefit rules will help remove barriers to work

Working Chance welcomes the Government’s announcement that people living in supported housing and temporary accommodation will be able to keep more of their earnings when they move into work or increase their hours from October 2026.

Many women with convictions live in supported or temporary accommodation as they rebuild their lives following contact with the criminal justice system. These services provide safe, stable housing alongside practical support, helping women address complex needs and move towards independent living.

People living in supported housing have long faced a barrier to employment. Under current Housing Benefit rules, getting a job could leave some people worse off financially, creating a “cliff edge” where taking on more work risks having to pay more towards the cost of their supported accommodation, trapping people on benefits rather than supporting them into work.

Many women we support face challenges when trying to rebuild their lives after contact with the criminal justice system, including insecure housing, financial hardship and significant barriers to employment. When someone is taking the important step of moving into work, the benefits system should provide stability and encouragement, not uncertainty.

One of our Employment Coaches saw first-hand the impact these rules had on women trying to rebuild their lives:

“I supported a woman recently who became homeless due to fleeing domestic abuse, and so was living in supported accommodation. She was someone who had always previously worked and was really motivated to get back into full-time employment.

When we started working together, she was warned by staff at her accommodation that she needed to ‘be careful’ as working a too many hours could mean facing higher costs to stay in the supported accommodation.

She felt like she had to choose between pursuing employment and maintaining the stability of her accommodation. It had a real impact on her mental health and heaped uncertainty onto her plate. What should have been a positive step towards independence became yet another barrier to employment and a huge source of frustration for her.”

At Working Chance, we have long called for this change as we know that employment is more than just providing an income. It can provide confidence, structure and routine, and a sense of belonging – factors which are all important in reducing the likelihood of reoffending and reducing reliance on benefits.

We welcome this recognition that the benefits system must work alongside people’s ambitions to enter employment, as opposed to creating a disincentive to finding work. This is an important step towards ensuring that people with convictions who are living in supported accommodation can pursue their career ambitions, rather than being forced to choose between housing support and a job.


Alex Clarke

Policy Officer

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