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Call for government to end ‘benefit trap’ affecting 30,000 young people in supported housing
A group of more than 150 youth, homelessness and housing association organisations has called on chancellor Rachel Reeves to end a “benefit trap” that affects an estimated 30,000 young people living in supported housing.
Call for government to end ‘benefit trap’ affecting 30,000 young people in supported housing #UKHousingA group of organisations has called on chancellor Rachel Reeves to end a “benefit trap” that affects an estimated 30,000 young people living in supported housing #UKhousingA coalition known as the Youth Chapter Collective is calling on the government to increase the amount that young people can earn before their benefit is reduced from £5 to £57 and cut the housing benefit taper rate from 65% to 55% to bring it in line with Universal Credit.
The group believes that under the current system, young people in supported housing are being trapped in low-income work and welfare dependency because their housing benefit is tapered faster than their pay would rise if they took on more hours.
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In an open letter to the chancellor ahead of the Budget, the organisations claim the changes would save the Treasury nearly £5m per year, according to modelling based on the 16 to 24-year-olds who would be affected, as well as a boost of £13m when accounting for non-cash benefits.
The group added that the saving is likely to be higher due to the thousands of over-25s living in supported housing and highlighted that it would bring parity with how housing benefit is tapered in the private rented sector.
The letter stated: “We urge you to bring forward this modest but impactful reform – we cannot afford to write off thousands of young people who are ready to work.
“A benefit system that disincentivises work and hinders ambition is a broken system. On 26 November, you have a chance to fix it. We urge you to take it.”
Signees of the letter include Centrepoint, Homeless Link, YMCA, StreetLink, Clarion, L&Q and the G15.
Balbir Kaur Chatrik, director of policy and prevention at Centrepoint, said: “Right now there are thousands of young people in supported housing who are desperate to work.
“They want to build a future they can be proud of, but instead they are being unfairly punished by a cruel quirk in the broken benefits system.
“However, at the upcoming Budget the chancellor has the opportunity to fix this injustice, giving young people a fair shot at thriving in their careers and lives.
“What we’re calling for is a modest yet impactful reform which, in the first year alone, could save the government millions and get more young people into work.”
A Department for Work and Pensions spokesperson told Inside Housing: “People receiving housing benefit are always better off in work than wholly reliant on benefits thanks to the income taper, and we are looking at measures to incentivise work for residents of supported and temporary accommodation.
“We’ve introduced the most ambitious employment reforms in a generation to modernise job centres and expand youth hubs, while launching an independent investigation into the barriers preventing young people earning or learning.
“This comes as we shift our focus from welfare to work, skills and opportunities so people have the support they need to move into good, secure jobs.”
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