The broad swathe of benefit cuts introduced by the Government in recent years has been controversial to say the least and, if recent indications are anything to go by, might be only the beginning.
Looking ahead at the rest of 2014, the Chancellor George Osborne said recently that this was going to be a year of ‘hard truths’ for the UK with further rounds of cuts required to try and lower welfare spending. The Chancellor identified that some £25 million of cuts were likely to be required in order to try to ‘fix’ the UK economy and that the welfare budget was being targeted as a source for savings.
One of the benefits that the Chancellor indicated should be cut was the housing benefit currently received by the under 25s. This is not the first time that removing this benefit has been raised by the Government, as in his speech to the Conservative conference back in October 2013, David Cameron also focused on cutting housing benefit to the under 25s as a source of welfare savings.
However, the Prime Minister attempted to frame the cut as a way of motivating those who fall into the under 25 age bracket back into work, rather than simply relying on ‘handouts.’
In October, the joblessness figures provided by the Department of Work and Pensions showed that 1.09 million 16 – 24 year olds were not in work, an issue that has proved equally difficult for many other European countries to tackle too – youth unemployment in Spain, for example, is above 50%. In the UK more than half of those under 25 claiming housing benefit are a parent, which complicates matters even more.
Mr Cameron said that "Today it is still possible to leave school, sign on, find a flat, start claiming housing benefit and opt for a life on benefits. It's time for bold action here." Secretary of State for Education Michael Gove has since joined in the conversation too, indicating that welfare should specifically be there to help those who have fallen on hard times and should not be ‘habituated.’
There is plenty of opposition to this approach, both as a way of tackling youth unemployment and a method of cutting spending in general. Many have pointed out that young people have already suffered significantly in the recession as a result of factors such as shrinking job sectors and a lack of affordable housing, and that all the government is doing is ensuring that they will be the ones who suffer most during the recovery too.
TUC general secretary Frances O'Grady highlighted that the actual effect of cutting the benefit would most likely be to push those who are already struggling financially deeper into poverty. This could have a very real impact on young people who are already facing serious problems such as homelessness. The charity Shelter has published statistics showing that between 2010 and 2012 there was a rise of at least 32% in national homelessness and 62% in London. Its statistics also demonstrate that young people are already the most vulnerable group when it comes to homelessness, with the number of 16-24 year olds sleeping rough having doubled in the last couple of years. Whilst the government may be able to describe the best of motives for removing the benefit, the effect of doing so could be quite catastrophic for a significant proportion of the UK’s youth.
At Stephensons we regularly advise those who are on the verge of homelessness – if you are in a position where you face losing your home, get in touch and see how we might be able to help.