Laura Sharman 17 March 2015

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

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

Creative Producer

Mansfield District Council
£34,434 - £39,152 per annum (pay award pending)
The Creative Producer will lead the Development Team Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Apprentice (Income Team)

Ashfield District Council
£10.85 per hour for the first 12 months then NLW
Ashfield District Council are looking an enthusiastic individual to join our busy Income Team Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Senior Engineer - Technical Enquiry Management (Traffic Management and Safety)

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take a leading role in managing technical enquiries and delivering safer, more efficient highways? Matlock, Derbyshire
Recuriter: Derbyshire County Council

Service Manager - Property and Investment

Ashfield District Council
£55,620 - £57,869 per annum (pay award pending)
As Service Manager – Property and Investment, you will be the Council’s professional lead on for commercial property and investment. Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Electrician (CDC)

City Of Doncaster Council
Grade 8, £34,434 - £38,221 (pay award pending)
We also carry out reactive electrical repairs, which includes fault finding of commercial/industrial and domestic properties Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner