Changes to the welfare system What they mean for young people

Changes to the welfare systemWhat they mean for young people London Councils Forum 15th June www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people • Two types in this workshop • Those Aimed Specifically at Young People • Those Which Are Not Aimed At But Are Likely To Have Disproportionate Impact on Young People • So…what have you been hearing about??? www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Conservative Party Manifesto 2015 “It is not fair that taxpayers should have to pay for 18-21 year-olds on Jobseeker’s Allowance to claim Housing Benefit in order to leave home. “So we will ensure that they no longer have an automatic entitlement to Housing Benefit.” www.homeless.org.uk Let’s end homelessness together

Its not 18-21 year olds claiming Housing Benefit but claiming Universal Credit from April 2017 STANDARD ALLOWANCE LIMITED CAPABILITY FOR WRA ELEMENT LIMITED CAPABILITY FOR WORK ELEMENT HOUSING COSTS ELEMENT (RENT) – this is what 18-21 year olds will no longer automaticalyrecieve

Changes to the welfare system and what they mean for young people Universal Credit Conservative Party Manifesto 2015 “We will see through our welfare reforms, lowering the benefit cap and rolling out Universal Credit, to make the system fairer and reward hard work. We will deliver Universal Credit, in order to provide the right incentives for people to work” “Gateway” starting to be removed in April 2016 www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Rationale for the change (To) “ensure young people in the benefits system face the same choices as young people who work and who may not be able to afford to leave home.” www.homeless.org.uk Let’s end homelessness together

Who Will be Impacted? The total Housing Benefit expenditure on under 21s is about £700 million Of under 21s claiming HB less than 20% also claim JSA This is because others Receive ESA (too sick to work) Income Support (are lone parents of young children) Are working on low wages IFS estimate that it would affect 24,000 households (single people, couples and parents of older children claiming JSA) The saving if HB is removed from that whole 24,000 is about £120 million per year

But? “We will ensure that vulnerable young people who are in need of support for their housing needs continue to receive it.” Justin Tomlinson MP (Under Secretary of State for Disabled People)

Changes to the welfare system and what they mean for young people Over to You!!! • Who do you think these exceptions need to be to ensure “vulnerable young people” are protected? www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Possible Exceptions – by size www.homeless.org.uk Let’s end homelessness together

Different Rules for Hostels and Supported Housing STANDARD ALLOWANCE LIMITED CAPABILITY FOR WRA ELEMENT LIMITED CAPABILITY FOR WORK ELEMENT HOUSING COSTS ELEMENT (RENT) – this is what 18-21 year olds will no longer automaticalyrecieve BUT UC HOUSING COSTS ARE NOT PAID TO PEOPLE IN HOSTELS AND SUPPORTED HOUSING (THEY GET HOUSING BENEFIT INSTEAD) IT WILL NOT AFFECT THEM

Changes to the welfare system and what they mean for young people Tougher Rules for Young People ??? • “We will abolish long-term youth unemployment, and make sure that all young people are either earning or learning” • The goal of welfare reform should be to reward hard work and protect the vulnerable” • Conservative Party Manifesto 2015 www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people “Workless young people to attend employment ‘boot camp” • “Out of work young people between the ages of 18 and 21 will be placed on an intensive activity programme within the first three weeks of submitting a benefit claim under plans put forward by government. • (These) include practice interviews and job applications. Cabinet Office minister Matthew Hancock said the new ‘boot camp’ will aim to get young people work-ready within six months” www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people After Six Months Claiming UC • “We will replace Jobseeker’s Allowance for 18-21 year-olds with a Youth Allowance that will be time-limited to six months, after which young people will have to take an apprenticeship, a traineeship or do daily community work for their benefits.” • Queen’s Speech www.homeless.org.uk Let’s end homelessness together

Its not 18-21 year olds claiming Job seekers Allowance but claiming Universal Credit from April 2017 STANDARD ALLOWANCE LIMITED CAPABILITY FOR WRA ELEMENT LIMITED CAPABILITY FOR WORK ELEMENT It will be new claimants to this part of Universal Credit from April 2017 these new rules will apply to. This (presumably) will include people in hostels and supported housing. HOUSING COSTS ELEMENT (RENT) – this is what 18-21 year olds will no longer automaticalyrecieve

Youth Obligation - Summary • Intensive Activity Programmes (or “Boot Camps”) as soon as a claim is made • After six months claiming the jobseeking component of Universal Credit mandatory attendance on apprenticeship, a traineeship or do daily community work • What are the challenges these present for your work with young people? • NB. Officials talk very much the language of working with young people rather than wanting to penalise them. To produce a programme increasing “employability www.homeless.org.uk Let’s end homelessness together

Over to you What do you think some of the comments that young people have said about this proposal? Do they welcome it? If so why? Are they concerned about it? If so why? What do they think it should be done differently?

Some opinions from young people Is it more likely to get me a job? • Good motivator as harder to pretend to look for work. • Support needed to acquire ‘real’ skills and qualifications endorsed by employers • May give skills and experience but can be abused by big corporations getting cheap labour. • There’s no choice for young people and no guaranteed job at the end www.homeless.org.uk Let’s end homelessness together

Some opinions from young people • Need high numbers of training placements so they are accessible (local) and relevant (of interest) • Need ‘back up plan’ for those who don’t get a job at the end. • The pay is too low for the hours worked. • Volunteering and work placements that young people find for themselves should count. • Young people will need more support so staff at services such as Job Centres need to be more friendly! www.homeless.org.uk Let’s end homelessness together

Some opinions from young people • Good to get people back in a routine • The name ‘Youth Obligation’ should be more positive • It should be piloted first • People on JSA should be required to get a job www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Are Sanctions are the biggest benefit challenge? www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Impact www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people How Clients Cope www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Sanctions - some recent changes you need to know about • The Government will trial “Yellow Card” system whereby claimants are given 14 days waning before a sanction is implemented to give claimants time to show good reason as to why it should not be. www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Sanctions - some recent changes you need to know about • The Government will consider extending the “at risk groups” to include homeless people and those with mental health conditions. • At risk groups can get JSA hardship payments (at 60% of usual rate) from Day One of their sanction. Other people have to wait two weeks www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people New Sanctions Rule for People Who Have Just Become Homeless • “Newly homeless" JSA claimants can be given a period of "easement" from job search requirements (up to 4 weeks) where they can concentrate on addressing their accommodation. Both under JSA and UC • If they are given the easement they will be expected to agree to undertake some basic actions to show they are addressing the “accommodation aspect” of their homelessness • http://www.homeless.org.uk/connect/news/2014/jun/30/welcome-change-to-help-homeless-people-seeking-work www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people Capping Of Social Housing Rents at LHA Rates www.homeless.org.uk Let’s end homelessness together

Those in Supported Housing Mean Weekly Rent and Eligible Service Charge by Scheme in England Hostel: £180 approx Supported Housing: £166 By contrast the average Shared Accommodation Rate in England: £66.33 Half of people in homeless hostels and supported housing are under-25. Presumably they will only be entitled to the Shared Accommodation Rate of benefit? There is a review taking place into the future funding of rents in supported housing

Changes to the welfare system and what they mean for young people Young People in Social Housing • Presumably this change will also impact on single people who have been through the statutory homelessness route and been allocated a one-bedroomed flat as suitable accommodation? • Shared Accommodation Rate as well? www.homeless.org.uk Let’s end homelessness together

Changes to the welfare system and what they mean for young people A couple of other changes Housing Benefit backdating restricted to four weeksMinimum wage increasing over to £9 per hour over next four years but not for young people www.homeless.org.uk Let’s end homelessness together

Thanks for listening Paul Anderson – paul.anderson@homelesslink.org.uk

Changes to the welfare system What they mean for young people