"For the last eight years, campaigners have warned that young people in supported housing are penalised more harshly for earning than their non-homeless counterparts and it's a UK-wide problem. For every 1 these youngsters earn over their small earnings allowance, their housing benefit is reduced by 65p, compared with 55p for those in the private rental sector. Perversely, the flaw crept in during reforms meant to guarantee people on benefits were always better off in work."
"Anecdotally, those in the housing sector say it causes plenty of young people to forego meaningful work. You can see why: someone working 10 hours could lose more than 100 a month for picking up an 11th hour of work. That can narrow their options, as they find themselves having to be prescriptive about their hours, competing with peers who can be more flexible. In the longer run, it can reduce their prospects."
Young people aged 16–24 who cannot live at home often live in supported housing such as shared flats or hostels with specialist staff. These residents frequently must cover service charges and bills while on benefits, yet face a steeper earnings taper: for every pound earned above a small allowance their housing benefit is cut by 65p, compared with 55p for private renters. The higher taper discourages additional work by reducing marginal pay, forces restrictive choices about hours, can damage long-term employment prospects, and sometimes leads staff to advise against taking extra work to protect housing.
Read at www.theguardian.com
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