Laura Sharman 17 March 2015

Cutting housing benefit for young jobseekers a false economy, says report

Cutting housing benefit for young jobseekers a false economy, says report image

Cutting housing benefit for young people claiming Jobseeker’s Allowance would fail to deliver significant savings due to an increase in youth homelessness, a new report is warning.

The Lifeline not lifestyle research, conducted by Heriot-Watt University for End Youth Homelessness, analysed the economic impact of cutting housing benefit for young people as proposed by the Government earlier this year.

The analysis showed that if implemented, the policy could save over £78m a year, but warned the cuts would lead to an increased use in other public services at a cost of £75m a year.

It concluded it would only take 140 young people to become homeless for the policy to cost more than it would save.

In the report’s foreword, chief executive of Centrepoint and speaking on behalf of End Youth Homelessness Seyi Obakin said: ‘The economics tells us that preventing some young people from claiming housing benefit will not save the taxpayer any money. If housing benefit were removed from all 18-21 year-olds who also claim Jobseeker’s Allowance, the scale of homelessness that resulted would virtually wipe out any savings to the taxpayer through increased evictions and resulting use of public services when people become homeless, including increased costs to the criminal justice system.

‘If exemptions for some young people such as care leavers and those who have children themselves were put in place, these reductions in savings added to the increased costs of supporting those who were not exempted and become homeless would again lead to only a negligible saving of £3m, not £128m.’

SIGN UP
For your free daily news bulletin
Highways jobs

Targeted Youth Advisor

Essex County Council
£25500 - £30000 per annum
Targeted Youth Advisor Fixed Term, Full Time £25,500 - £30,000 Per Annum Location
Recuriter: Essex County Council

Targeted Youth Adviser

Essex County Council
£25500 - £30000 per annum
Targeted Youth Adviser Fixed Term, Full Time £25,500 to £30,000 per annum Location
Recuriter: Essex County Council

Training Specialist / SEND Support - Travel Trainer

Essex County Council
£21454 - £22454 per annum
Training Specialist / SEND Support - Travel Trainer Permanent, Full Time Up to £22,454 per annum Location
Recuriter: Essex County Council

Adult Occupational Therapists - Chelmsford

Essex County Council
£32065 - £43839 per annum
Adult Occupational Therapists - ChelmsfordPermanent, Full Time£32,065 - £43,839 per annumLocation
Recuriter: Essex County Council

Supported Learning Tutor

Essex County Council
Up to £26801 per annum
Supported Learning TutorPermanent, Full TimeUp to £26,801 per annumLocation
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue