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.’

Roads to recovery image

Roads to recovery

Alex Glassbrook explores if councils were legally allowed to make amendments to traffic regulation orders in the wake of the coronavirus pandemic.
For your free daily news bulletin
Highways jobs

Technician - Structures

Milton Keynes Council
£24,799 - £28,785
We’re looking for talented individuals to be part of our expanding team working on everything from local schemes to... Milton Keynes, Buckinghamshire
Recuriter: Milton Keynes Council

Social Worker - Learning Disabilities Team

Kirklees Metropolitan Council
£24,799 - £32,878
We’re looking for Social Workers to join our team! Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Occupational Therapy Team Manager

North Yorkshire County Council
£38,813 - £42,683
We are looking for an Occupational Therapy Team Manager for our recently formed specialist children’s’ social care team. North Yorkshire
Recuriter: North Yorkshire County Council

Experienced Social Worker - Placement Support

Kirklees Metropolitan Council
£30,507 - £38,813
We are looking for a talented, experienced social worker to join our Looked After Children Service, the service is made up of 4 teams.  Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Economic Resilience Project Officer - Marketing

Kirklees Metropolitan Council
£30,507 - £32,878
This job is fixed term until 31st December 2021 due to funding. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan 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