DWP benefit claimants 'could lose out' under new rules

Concerns have been voiced that recent alterations to DWP benefit regulations might result in some individuals being 'worse off'. Labour MP Mike Reader questioned the Government on whether ministers had assessed how policy shifts could lead to "young people in supported housing becoming worse off when entering into employment because of benefit rules".

He also mentioned the Get Britain Working white paper, released last year, which details Labour's strategies to assist the unemployed in finding work and to support benefit recipients in increasing their working hours. In reply, pensions minister Sir Stephen Timms stated that the income taper for Housing Benefits ensures that "people in work are better off than someone wholly reliant on benefits".

Mr Timms further remarked: "In addition to any financial advantage, there are important non-financial benefits of working." He listed benefits such as acquiring new skills, enhanced confidence and independence, and a beneficial impact on an individual's mental and physical health.

However, the minister acknowledged a problem with the way Housing Benefit and Universal Credit operate for certain claimants. He explained: "The Department acknowledges there is a challenge presented by the interaction between Universal Credit and Housing Benefit for those residing in Supported Housing and Temporary Accommodation and receiving their housing support through Housing Benefit. The department will consider the issue carefully in partnership with stakeholders."

Approximately 2.8 million individuals are currently unemployed due to prolonged illness. The Get Britain Working initiative includes help for employers to hire more individuals with health conditions and disabilities.

Labour also