The Housing Benefit (Earned Income Disregards) (Amendment) (No. 2) Regulations 2026

Published: Mon 7th Sept 26 Came into force: Fri 2nd Oct 26

Department: Department for Work and Pensions
Made under: Social Security Contributions and Benefits Act 1992, Social Security Administration Act 1992
Applies to: England, Wales, Scotland

Revised the eligibility and calculation rules for Housing Benefit earned income disregards for residents in specified and temporary accommodation.

These Regulations amend the Housing Benefit (Earned Income Disregards) (Amendment) Regulations 2026 to ensure that specific earnings disregards apply correctly to claimants residing in specified or temporary accommodation.

They direct that lone parents be included in the disregard framework, remove minimum-hours requirements for eligibility, and establish specific disregard amounts ranging from £61.41 to £119.70 based on the claimant's age and household status.

The instrument applies to the Department for Work and Pensions and local authorities responsible for administering Housing Benefit in England, Wales, and Scotland.

Arguments For

The Explanatory Memorandum states that the regulations correct defects in S.I. 2026/753 to ensure the original policy intent is fully implemented upon commencement.
The department reports that the amendments remove an unintended minimum-hours requirement by replacing the term "remunerative work" with a requirement to be an "employed earner or self-employed earner."
The legislation specifies that lone parents are explicitly included in the new disregard framework, addressing a definition in the Housing Benefit Regulations 2006 that might otherwise have excluded them.
Proponents argue the instrument clarifies the specific disregard amounts applicable to claimants under 18 and ensures the disregard can be shared between partners.
The department states that making these corrections before the original regulations take effect provides clarity for local authorities and IT software suppliers, avoiding the need for operational workarounds.

Arguments Against

Legal scholars or affected parties might question the necessity of a second amendment instrument (No. 2) before the original regulations (S.I. 2026/753) have even come into force, suggesting potential issues in the initial drafting process.
Local authorities may face administrative pressure to update software systems and guidance within the short window between the laying of these regulations on 7 September 2026 and their commencement on 2 October 2026.
While the department claims no significant impact on the voluntary sector, organizations supporting residents in specified or temporary accommodation must ensure their advice accurately reflects the revised eligibility criteria and disregard amounts.

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Housing Benefit (Earned Income Disregards) (Amendment) (No. 2) Regulations 2026 and come into force on 2nd October 2026.

(2) These Regulations extend to England and Wales and Scotland.

This section establishes the official title of the regulations and sets the date they become legally effective as 2 October 2026.

It specifies that the legal reach of the instrument covers the jurisdictions of England, Wales, and Scotland.

Amendments to the Housing Benefit (Earned Income Disregards) (Amendment) Regulations 2026

2.—(1) The Housing Benefit (Earned Income Disregards) (Amendment) Regulations 2026 are amended as follows.

(2) In regulation 2 (amendments to the Housing Benefit Regulations 2006), for paragraph (4) substitute—

"(4) In Schedule 4 (sums to be disregarded in the calculation of earnings)—

(a) In paragraph 17(5), in sub-paragraph (3)(a), after "paragraphs 3 to 10A" insert "and 18";

(b) After paragraph 17, insert—

"18.—(1) Where—

(a) the claimant is resident in accommodation specified in paragraph 3A or paragraph 3B of Schedule 1 to the Universal Credit Regulations 2013 (meaning of payments in respect of accommodation);

(b) the claimant, or, if the claimant has a partner, the claimant or their partner, is an employed earner or self-employed earner,

the amount specified in sub-paragraph (2); but, notwithstanding regulation 25 (calculation of income and capital of members of claimant's family and of a polygamous marriage), if this paragraph applies to a claimant, where the claimant has a partner, it shall not apply to their partner except where, and to the extent that, the earnings of the claimant which are to be disregarded under this paragraph are less than the amount specified in subparagraph (2).

(2) Where the claimant—

(a) is a single claimant who—

(i) has not attained the age of 25 years, £61.41;

(ii) has attained the age of 25 years, £77.73;

(b) is a lone parent who—

(i) has not attained the age of 25 years, £61.41;

(ii) has attained the age of 25 years, £77.73;

(i) the claimant and their partner have not attained the age of 18 years, £97.33;

(ii) the claimant or their partner has attained the age of 18 years but the claimant and their partner have not attained the age of 25 years, £61.53;

(iii) the claimant or their partner has attained the age of 25 years, £119.70."."

This section modifies previous regulations to ensure new earnings disregards are factored into existing Housing Benefit calculations for residents in temporary or specified accommodation.

It mandates that if a claimant's own earnings do not use up the full disregard amount, the remaining portion can be applied to their partner's earnings.

The section also lists the exact weekly amounts to be ignored when calculating benefit entitlement: £61.41 or £77.73 for single people and lone parents depending on age, and between £61.53 and £119.70 for couples.

Explanatory Memorandum PDF View Source

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