diff --git a/plugins/woocommerce-admin/changelogs/fix-default-layout b/plugins/woocommerce-admin/changelogs/fix-default-layout
new file mode 100644
index 00000000000..f768a5b3a0a
--- /dev/null
+++ b/plugins/woocommerce-admin/changelogs/fix-default-layout
@@ -0,0 +1,4 @@
+Significance: patch
+Type: Fix
+
+Ensure homescreen defaults to single column layout. #7969
diff --git a/plugins/woocommerce-admin/client/tasks/tasks.tsx b/plugins/woocommerce-admin/client/tasks/tasks.tsx
index ee0d4ac33ba..b804f9c15f1 100644
--- a/plugins/woocommerce-admin/client/tasks/tasks.tsx
+++ b/plugins/woocommerce-admin/client/tasks/tasks.tsx
@@ -76,7 +76,6 @@ export const Tasks: React.FC< TasksProps > = ( { query } ) => {
 		const taskListsFinished = false;
 		updateOptions( {
 			woocommerce_task_list_prompt_shown: true,
-			woocommerce_default_homepage_layout: 'two_columns',
 		} );
 	}, [ taskLists, isResolving ] );
 
diff --git a/plugins/woocommerce-admin/client/tasks/test/tasks.test.tsx b/plugins/woocommerce-admin/client/tasks/test/tasks.test.tsx
index b8bb2fff034..16b9be2e942 100644
--- a/plugins/woocommerce-admin/client/tasks/test/tasks.test.tsx
+++ b/plugins/woocommerce-admin/client/tasks/test/tasks.test.tsx
@@ -147,7 +147,6 @@ describe( 'Task', () => {
 		);
 		expect( updateOptions ).toHaveBeenCalledWith( {
 			woocommerce_task_list_prompt_shown: true,
-			woocommerce_default_homepage_layout: 'two_columns',
 		} );
 	} );
 
diff --git a/plugins/woocommerce-admin/client/two-column-tasks/index.js b/plugins/woocommerce-admin/client/two-column-tasks/index.js
index c697a1b4e6e..81429136825 100644
--- a/plugins/woocommerce-admin/client/two-column-tasks/index.js
+++ b/plugins/woocommerce-admin/client/two-column-tasks/index.js
@@ -3,7 +3,7 @@
  */
 import { __ } from '@wordpress/i18n';
 import { useEffect } from '@wordpress/element';
-import { useDispatch, useSelect } from '@wordpress/data';
+import { useSelect } from '@wordpress/data';
 import { ONBOARDING_STORE_NAME, OPTIONS_STORE_NAME } from '@woocommerce/data';
 
 /**
@@ -30,7 +30,6 @@ const taskDashboardSelect = ( select ) => {
 };
 
 const TaskDashboard = ( { query, twoColumns } ) => {
-	const { updateOptions } = useDispatch( OPTIONS_STORE_NAME );
 	const {
 		keepCompletedTaskList,
 		isResolving: isResolvingOptions,
@@ -119,16 +118,6 @@ const TaskDashboard = ( { query, twoColumns } ) => {
 						'Get ready to start selling',
 						'woocommerce-admin'
 					) }
-					onComplete={ () =>
-						updateOptions( {
-							woocommerce_default_homepage_layout: 'two_columns',
-						} )
-					}
-					onHide={ () =>
-						updateOptions( {
-							woocommerce_default_homepage_layout: 'two_columns',
-						} )
-					}
 				/>
 			) }
 		</>
diff --git a/plugins/woocommerce-admin/includes/wc-admin-update-functions.php b/plugins/woocommerce-admin/includes/wc-admin-update-functions.php
index e1ca6d9264e..7fce718cc9b 100644
--- a/plugins/woocommerce-admin/includes/wc-admin-update-functions.php
+++ b/plugins/woocommerce-admin/includes/wc-admin-update-functions.php
@@ -310,6 +310,13 @@ function wc_admin_update_290_update_apperance_task_option() {
 	delete_option( 'woocommerce_task_list_appearance_complete' );
 }
 
+/**
+ * Delete the old woocommerce_default_homepage_layout option.
+ */
+function wc_admin_update_290_delete_default_homepage_layout_option() {
+	delete_option( 'woocommerce_default_homepage_layout' );
+}
+
 /**
  * Update DB Version.
  */
diff --git a/plugins/woocommerce-admin/packages/admin-e2e-tests/src/pages/PaymentsSetup.ts b/plugins/woocommerce-admin/packages/admin-e2e-tests/src/pages/PaymentsSetup.ts
index 53e4e43914a..3bc8ec8ad5d 100644
--- a/plugins/woocommerce-admin/packages/admin-e2e-tests/src/pages/PaymentsSetup.ts
+++ b/plugins/woocommerce-admin/packages/admin-e2e-tests/src/pages/PaymentsSetup.ts
@@ -54,6 +54,5 @@ export class PaymentsSetup extends BasePage {
 	async enableCashOnDelivery() {
 		await this.page.waitForSelector( '.woocommerce-task-payment-cod' );
 		await this.clickButtonWithText( 'Enable' );
-		await waitForTimeout( 500 );
 	}
 }
diff --git a/plugins/woocommerce-admin/packages/admin-e2e-tests/src/specs/tasks/payment.ts b/plugins/woocommerce-admin/packages/admin-e2e-tests/src/specs/tasks/payment.ts
index 5ee1fc2d16c..0515dce47f3 100644
--- a/plugins/woocommerce-admin/packages/admin-e2e-tests/src/specs/tasks/payment.ts
+++ b/plugins/woocommerce-admin/packages/admin-e2e-tests/src/specs/tasks/payment.ts
@@ -77,6 +77,9 @@ const testAdminPaymentSetupTask = () => {
 			await waitForTimeout( 1000 );
 			await homeScreen.clickOnTaskList( 'Set up payments' );
 			await paymentsSetup.enableCashOnDelivery();
+			await homeScreen.navigate();
+			await homeScreen.isDisplayed();
+			await waitForTimeout( 1000 );
 			await homeScreen.clickOnTaskList( 'Set up payments' );
 			await paymentsSetup.isDisplayed();
 			await paymentsSetup.methodHasBeenSetup( 'cod' );
diff --git a/plugins/woocommerce-admin/src/Install.php b/plugins/woocommerce-admin/src/Install.php
index 05a6c811497..5bcad7bd2ee 100644
--- a/plugins/woocommerce-admin/src/Install.php
+++ b/plugins/woocommerce-admin/src/Install.php
@@ -71,6 +71,7 @@ class Install {
 		),
 		'2.9.0'  => array(
 			'wc_admin_update_290_update_apperance_task_option',
+			'wc_admin_update_290_delete_default_homepage_layout_option',
 			'wc_admin_update_290_db_version',
 		),
 		'3.0.0'  => array(