Guidance

A13/2025: The Welfare Reform Act 2012

Updated 7 November 2025

Who should read

All Housing Benefit colleagues and wider if appropriate

Action

For information

Subject

The Welfare Reform Act 2012 (Commencement No. 35) (Abolition of Benefits) Order 2025.

Guidance Manual

The information in this circular does not affect the content of the HB Guidance Manual.

Queries

Extra copies of this circular/copies of previous circulars can be found at Housing Benefit for local authorities: adjudication circulars.

For queries about the:

Recipients may freely reproduce this circular.

Introduction

1. This circular provides guidance on the Welfare Reform Act 2012 (Commencement No. 35) (Abolition of Benefits) Order 2025. 

2. The order was made on 3 November 2025 and comes into force on 14 November 2025.

Background

3. Currently people remain on Housing Benefit (HB) if they are in receipt of HB when they move from temporary accommodation or specified accommodation to general needs accommodation within the same authority, rather than migrate to Universal Credit (UC). From 14 November, as a result of this Order, anyone who moves to general needs accommodation will need to claim UC for their housing costs regardless of whether they are receiving HB only or already receiving UC for their living costs.  

4. The Welfare Reform Act 2012 (Commencement No. 35) (Abolition of Benefits) Order 2025 terminates Working Age HB for those who are not entitled to UC, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance and do not live in temporary accommodation or specified accommodation. 

5. Where a claimant who is already entitled to UC moves from temporary accommodation or specified accommodation into general needs accommodation, HB will automatically cease and they may qualify for the housing costs element in UC.

Closure of Housing Benefit claims

6. The Commencement Order provides the mechanism for ending HB in a case where the claimant is not already entitled to UC and is not being moved to UC by managed migration.  

7. Where the move to general needs accommodation occurs on or after 14 November 2025, section 33(1)(d) of the Commencement Order provides for abolition of HB and is brought into force in relation to the existing award.  

8. The termination of the HB award does not prevent a new claim for HB if the claimant subsequently qualifies again because they move back into temporary accommodation or specified accommodation.

Impact on local authorities

9. To clarify, the Order does not apply retrospectively. In other words, it only applies to cases processed on or after 14 November 2025. Therefore, there is no requirement to review cases actioned before that date as they will be picked up as part of UC managed migration. Cases impacted by the change should be processed in the same way as any other case which migrates to UC and they will be entitled to a Transition to UC housing payment.