Spoken dialogue systems typically use one or several (top-N) ASR sequence(s) for inferring the semantic meaning and tracking the state of the dialogue. However, ASR graphs, such as confusion networks (confnets), provide a compact representation of a richer hypothesis space than a top-N ASR list. In this paper, we study the benefits of using confusion networks with a neural dialogue state tracker (DST). We encode the 2-dimensional confnet into a 1-dimensional sequence of embeddings using a confusion network encoder which can be used with any DST system. Our confnet encoder is plugged into the ‘Global-locally Self-Attentive Dialogue State Tacker’ (GLAD) model for DST and obtains significant improvements in both accuracy and inference time compared to using top-N ASR hypotheses.