Benefits ‘trap’ forces homeless young people out of work
If living without a home wasn’t enough, over 140 organisations have expressed their frustration with outdated benefit rules that are forcing young people out of employment.
The companies have created the #PlanForThe136k campaign which includes charities such as Centrepoint, the YMCA, DePaul and the New Horizon Youth Centre and groups such as the National Housing Federation.
As part of the scheme, which was first created in summer 2023, the groups have written an open letter to the Chancellor warning that people rebuilding their lives in supported accommodation are being ‘punished’, because when they start to earn more money, their housing benefit is cut faster than their pay is rising, leaving many unable to afford essentials like food.
According to the charity Centrepoint, which supports homeless people aged between 16-25, across the UK it is estimated that almost 136,000 young people were presented to their local authority as homeless or at risk of it between April 2022 and March 2023.
Leon Ward, CEO of the financial education charity, mybnk, said: ‘We see firsthand how young people in supported accommodation face an unjust benefit trap that penalises them for working.
‘As their housing benefit is reduced steeply, working more hours often results in less overall income, keeping them trapped in poverty. We need to address this broken system.
‘By adjusting the Housing Benefit taper rate and reviewing the housing benefit, we can open doors for thousands of young people, helping them become financially fluent and build brighter futures.’
Fran Darlington-Pollock, Greater Manchester Mayor’s Charity, added: ‘No one should be forced to limit their choices in work and employment because it erodes the housing support they need, but for thousands of young people experiencing homelessness that is the reality.
‘Tapering housing benefit at a steeper rate for people in supported accommodation than for people in private rented accommodation widens inequities in the system and undermines the opportunities and outcomes for young people who have already faced adversity.
‘Work should pay, but the benefits system should also support.’
News of the open letter has come following stark new findings from London Councils that show 15% of young people were under 18 when they first experienced rough sleeping.
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