This benefits 'trap' is forcing homeless young people out of work, charities say

A benefits “trap” is forcing young people experiencing homelessness out of work, campaigners and charities have warned.

Thousands of young people are finding that their housing benefit is tapered faster than their income is rising when they start to earn more. This leaves them with less overall income and often unable to afford the essentials.

More than 140 organisations have come together to urge the government to overturn the outdated benefit rules.

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Campaign group #PlanForThe136k has written an open letter to chancellor Rachel Reeves asking for the removal of the benefit trap that homeless young people in supported accommodation face when working.

#PlanForThe136k includes charities such as Centrepoint and the YMCA, and groups such as the National Housing Federation. It draws its name from the almost 136,000 young people in the UK who faced homelessness last year.

Leon Ward, chief executive 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.”

#PlanForThe136k is urging the chancellor to fix this in October’s budget which could help almost 31,000 homeless young people into work and drastically change their futures.

The current benefit rules only affect those living in supported accommodation because they receive their rent via housing benefit.

Those who receive universal credit to support their rent have a more lenient taper rate. Centrepoint estimates that the Treasury could save over £12m a year by changing these benefit rules.

Fran Darlington-Pollock, head of Greater Manchester Mayor’s Charity, said: “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.”

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