Updated 14 September 2011
Housing support
Welfare reform is very much a priority for the Government and Housing Benefit reform will be considered in the context of our wider welfare reform objectives.
The Welfare Reform Bill was introduced to Parliament on 16 February 2011. It introduces a wide range of reforms that will deliver the commitment made in the Coalition Agreement and the Queen’s Speech to make the benefits and tax credits systems fairer and simpler.
The Welfare Reform Bill will legislate for the abolition of Housing Benefit. This will enable us to provide an appropriate amount of support to the Universal Credit award to help meet the costs of household rent or mortgage interest.
But our clear ambition is that housing support will be easier to understand and administer than the current schemes with simpler, more aligned, rules. Whilst we are still developing our plans, we expect that the amount provided will be broadly similar to the support currently provided through Housing Benefit or the Support for Mortgage Interest scheme.
The Bill also introduces legislation to create a fairer approach to Housing Benefit to bring stability to the market and improves incentives to work.
Changes to Housing Benefit for people in the private rented sector
We have introduced a number of changes to Housing Benefit for people who rent from a private landlord. Housing Benefit for people in the private rented sector is worked out using the Local Housing Allowance arrangements.
You can get details about the Local Housing Allowance arrangements and the changes we have introduced on our Local Housing Allowance pages.
Changes in the social rented sector
As part of the changes being introduced in the Welfare Reform Bill, the Government wants to see very many more people handle their own benefit and rent payments. This includes paying the housing component of Universal Credit to individuals in the social housing sector.
