Young individuals aged 16-24 who are unable to live at home often find themselves in supported housing arrangements, such as shared flats or hostels, where they receive assistance from specialized staff. Despite this support, these young people are frequently responsible for service charges and other bills, which can impede their ability to focus on their futures rather than basic living costs.
While government intervention aims to assist vulnerable young populations, concerns have been raised regarding how effectively this support is implemented. For the past eight years, advocates have highlighted a disparity in the financial treatment of young people in supported housing versus their peers in the private rental sector. Specifically, for every pound they earn above a limited earnings allowance, their housing benefit is reduced by 65 pence, compared to a 55 pence reduction for those not facing homelessness. This system was designed to ensure that benefits recipients are better off when employed, yet it has seemingly resulted in a penalty for young homeless individuals striving to work.
Reports suggest that this financial disincentive may lead some young people to avoid additional employment opportunities. For instance, taking on even a small number of extra hours could result in losing significant monthly income, creating a challenging situation where flexibility and financial stability become limited.
A coalition of 150 organizations has launched a campaign urging government officials to raise the current earnings allowance significantly and adjust the housing benefit taper to align with universal credit. Advocates argue that these changes would not only provide essential financial support to one of the UK’s most vulnerable demographics but also potentially yield financial benefits for the government as more young people enter the workforce.
Concerns about rising unemployment, unstable housing, and stagnant wages among young people have intensified, prompting calls for action from policymakers. Critics of the current system have questioned why the financial challenges faced by around 30,000 young homeless individuals differ from those of their peers and emphasize the necessity of equitable work incentives in any future policy discussions.
Source: https://www.theguardian.com/commentisfree/2025/nov/23/the-guardian-view-on-the-young-persons-benefit-trap-rachel-reeves-must-fix-this-flaw-in-the-budget