Recommendation 7

The benefit rules for Universal Credit and Housing Benefit can interact in such a way that a cliff edge arises when claimants in supported accommodation who must Plan for Jobs and employment support 81 claim both benefits work more than 12 hours a week. This is counter-productive to encouraging younger employees to return to the labour market. DWP should not maintain any policies or practices that stand in the way of people who want to work. Not only does this reduce labour market engagement in the short-term it can also prevent people from progressing at work and becoming financially independent in the long-term. DWP needs to remove this cliff edge. The Government should increase the applicable amount within Housing Benefit for young people in supported accommodation to £117.56 a week, either by raising the personal allowance or by introducing a new premium. This would bring the benefit taper in line with those not in supported housing. This change should be implemented no later than the start of the 2024–25 financial year.