The system discourages young homeless people from earning more – that’s the very opposite of Labour’s aim to make work pay
Consider being a young homeless person on benefits today. Those aged 16-24 who can’t live at home often end up in supported housing. This could be a shared flat or a hostel, where specialist staff are on hand to help. But such young people frequently have to cover service charges and bills – at an age when they should be building a future, not worrying about basic costs.
It’s good that the state steps in to support vulnerable young people. But wrong that it can undermine that help in practice. For the last eight years, campaigners have warned that young people in supported housing are penalised more harshly for earning than their non-homeless counterparts – and it’s a UK-wide problem. For every £1 these youngsters earn over their small earnings allowance, their housing benefit is reduced by 65p, compared with 55p for those in the private rental sector. Perversely, the flaw crept in during reforms meant to guarantee people on benefits were always better off in work.
