Cuts to u25’s housing benefit will frustrate growth agenda

There are currently 383,650 households who are under 25 on housing benefit in Britain and if everyone in this bracket was disqualified the government would save £1.88 billion, which is some what short of its £10 billion target.

Removing help with housing costs for under 25s could significantly reduce peoples’ willingness to move to take up a job opportunity if they fear that they should then subsequently lose their job.

Many young people will also have paid tax and national insurance for years prior to needing to claim benefit. It appears contrary to the government’s fairness principle that they should not have access to the same support as others.
 
Grainia Long, chief executive CIH, said: “It is impossible to create economic growth without a mobile workforce. It is crucial that everyone has access to help with housing costs to stimulate growth in the economy through jobs and stable homes. Blanket age based exclusions don’t support growth and they fail the fairness test.

“Ministers have already said they want every new policy to support economic growth. It’s unclear how these cuts will pass that test.”

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