Sector welcomes Budget benefit changes

The main alteration allows claimants to work part-time – between 16 and 30 hours a week – and still receive housing benefit. However, the move is not expected to increase workloads for councils administering the benefit, as many of the claimants now able to work would have been claiming benefit before the change. Gwyneth Taylor, programme manager for the Local Government Association, said: "It's unlikely to make a significant difference to councils' workloads but will make a difference to applicants' disposable income. In the long term, it could lead to them moving into work that is full-time or so well-paid that it will take them off benefits."

The Department for Work and Pensions estimated that 90,000 claimants would be up to £10 a week better off after the change.

In his Budget speech, chancellor Gordon Brown also mentioned changes to the claims process for people who had recently got a job, which came into force from Budget day. The changes, originally unveiled last year, mean benefit claimants do not have to submit an entirely new claim every six months or when they get a job. Now they will just inform the council of their change of circumstances, which requires far less administration time.

Homelessness charity Shelter welcomed the change and said it would encourage people into work and reduce arrears while claims were processed.