A new report has proposed sweeping changes to income thresholds for public sector housing, including a system that would automatically update eligibility criteria each year.
Current thresholds range from £34,500 for a single applicant to £50,500 for couples with three or more children.
The report, prepared at the request of the DoI, examines options for setting income limits for General Needs Public Sector Housing.
Under one proposal, two adults working full-time on the 2026 minimum wage of £12.86 would qualify. This would create thresholds between £33,000 and £100,000 for different household types.
This would match the DoI’s policy proposal that two adults working full-time on the 2026 minimum wage should meet income eligibility criteria for public sector housing.
The report warns that existing thresholds “likely fall short of sufficiently accounting for the cost of raising children”.
Hybrid
A hybrid model linking threshold increases to both minimum wage growth and CPI inflation is recommended for automatic annual updates.
“Using a 37.5 hour work week, and the 2026 minimum wage of £12.86, these two adults would earn a combined 50,154 annually,” the report states.
The analysis also proposes using a “generosity factor” to limit thresholds for larger families.