A new briefing created by Centrepoint and supported by BHT Sussex, Crisis, YMCA, St Mungo’s and Homeless Link outlines how the government could make significant savings by implementing policy changes to address a benefits anomaly that penalises people living in supported accommodation.
The briefing contains cost-benefit analysis for 16–24-year-olds that shows that the government could gain nearly £13million in one year if specific policy changes are made to end an anomaly in the benefits system which disincentives people in supported accommodation to enter or progress in work. If this were to be expanded to all working age people in supported housing, the savings would be even greater.
BHT Sussex launched a campaign in March 2023, Make Work Pay for Everyone, which aims to address this same benefits anomaly which results in homeless hostel residents being financially disadvantaged when they start working. We have been working behind the scenes since then, lobbying MPs and liaising with the Department for Work and Pensions to try and find a workable solution to the problem. We were motivated to act because many of our Accommodation for Work clients found themselves worse off when they increased their working hours, simply because they were living in a homeless hostel, and this is clearly unfair.
This latest research provides further evidence that this unfairness in the benefits system needs to be addressed, and shows how doing so can save the government a significant amount of money.