Two people sitting at a desk opposite each other

Campaign with us to Make Work Pay

Young people deserve to reach their full potential and be excited about their future in work.  But right now, outdated benefit rules are holding them back.

The Government is so close to changing this in the October Budget, let’s make sure they don’t forget.

So, what’s the issue?

Young people who are living in supported housing, such as those who have left care or experienced homelessness, deserve to access employment and be motivated to work. For homeless young people, having a job is a crucial step towards becoming independent and building a stable future. 

But right now, the rules around benefits are making it harder for homeless young people to work more hours and earn extra money, as they start to lose their benefits if they go over a certain number of hours. This means young people in supported accommodation are being discouraged from taking on more work or trying to increase their income – this isn’t fair.  

We need the Government to end the benefit trap for young people in supported accommodation so they can succeed, rather than be set up to fail.
 

We are calling on the Government to Make Work Pay and end the benefit trap that homeless young people are facing. Will you join us?

A group of young people stand together outside looking hopeful

Email your MP about our campaign to Make Work Pay

This Budget is a crucial time for the Government to Make Work Pay and end the benefit trap for young people in supported accommodation– all we need is their commitment.

Can you help us by asking your MP to talk to the Treasury?

Email your MP now

Making Work Pay - the research

Young people in supported accommodation are effectively blocked from working more than a minimum number of hours – leaving them unemployed and struggling to escape homelessness.  

This is because, when these young people start work, their Universal Credit is tapered in line with their earnings. Once their Universal Credit is tapered to nil, their income is reassessed under housing benefit rules – at a higher rate of 65 per cent.  

This disincentivises work above a certain number of hours and, in some cases, getting a job at all.

Centrepoint found that addressing this issue could move thousands into employment and save the government over £12 million per year. 

Read our research on Making Work Pay

#Planforthe136k Open Letter to Chancellor Rachel Reeves

The #Planforthe136k collective of over 140 youth, homelessness and housing association organisations have come together to urge the Chancellor Rachel Reeves to support our campaign to Make Work Pay.

This is a shared call for the Chancellor Rachel Reeves to commit to Making Work Pay and ending the benefit trap that homeless young people in supported accommodation face when working. The campaign highlights how important a simple policy change from the Chancellor in the October Budget will be to the future of homeless young people’s ability to work. 

Make Work Pay – An Open Letter to Chancellor Rachel Reeves 

14 October 2024 

Dear Chancellor Rachel Reeves,

We are a collective of over 140 youth, homelessness and housing association organisations who urge you to support our campaign to Make Work Pay in supported accommodation. We share your commitment to making work pay and growing the economy in a way that benefits everyone. 

We are asking you to remove the benefit trap that homeless young people in supported accommodation face when working.

Work is incredibly important for homeless young people – it's the chance to build confidence, gain financial independence and leave homelessness behind for good. 

However, the current benefits system punishes homeless young people living in supported accommodation who are just trying to work. Thousands are finding that their path to more money and an independent future is blocked because their housing benefit is tapered faster than their pay would increase if they started working more hours – leaving them with less overall income. 

What is worse is that this only affects people living in supported accommodation because they receive their rent via legacy Housing Benefit. Private renters – who receive Universal Credit to support their rent – have a much more lenient taper rate and so get a fairer deal.

But it doesn’t have to be this way. As the Chancellor, you can fix this in October’s Budget and change the futures for thousands of homeless young people. Centrepoint estimates that the Treasury could save over £12 million a year by ending the benefit trap and supporting thousands of young people into work; with the actual saving likely to be much higher as there are thousands more people living in supported accommodation over 25. 

You can unlock thousands of young people’s potential by lowering the Housing Benefit taper rate and increasing the applicable amount available under Housing Benefit. 

The current system sets up young people experiencing homelessness to fail. At the start of their careers, we should be encouraging them to dream big. Instead, we have them facing an impossible choice: work fewer hours in less meaningful jobs to avoid getting into debt - or chase their career ambitions by working more hours but struggling to afford basic essentials. 

We should be encouraging young people to dream big, whatever their background – rather than asking them to work more hours, for less overall income. 

The benefit system should promote work and foster ambition, particularly for people just entering the jobs market. On 30 October, you have a chance to create that system; we urge you to take it.

An unjust benefit system that disincentivises work and hinders ambition is a broken system. On 30 October you have a chance to fix it, we urge you to take it. 

Sincerely, 

1625 Independent People

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Aberdeen Foyer
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Ayr Housing Aid Centre
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BHT Sussex
Broxtowe Youth Homelessness
Buttle UK
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