The British government's handling of young people on benefits has created a flawed system that undermines their ability to gain employment and build a future.
In reality, many 16- to 24-year-olds who are unable to live at home with family end up in supported housing, where they often have to pay service charges and bills despite being financially dependent on the state. This can be a confusing situation, as these individuals are expected to contribute to society by working but face severe penalties for earning more than a small amount over their basic allowance.
For instance, if someone in supported housing earns £1 over their earnings allowance, they will lose 65p from their housing benefit, compared to just 55p for those living in the private rental sector. This punitive system discourages young people from taking on more hours of work, limiting their job prospects and earning potential.
The irony lies in the fact that this flaw arose during reforms aimed at ensuring people on benefits were better off in employment, rather than relying solely on government support. It's counterintuitive to penalize those who want to work more, especially considering the significant financial hit they can take for even small increases in earnings.
Rachel Reeves, the Chancellor, has a chance to rectify this situation with her upcoming budget. A new campaign, supported by 150 youth and homeless organizations, is calling for the earnings allowance to be raised from £5 to around £57 per week and for the housing benefit taper to be reduced from 65% to 55%. This would provide more financial support for young people in supported housing, enabling them to work and build a future without fear of losing their benefits.
The Treasury estimates that this new policy would gain them £5 million annually as more young people move into employment. Considering the long-term benefits of improved health, reduced crime rates, and enhanced job prospects, the net gain could be as high as £13 million per year. By making work pay for all, not just those on universal credit, the government can signal its commitment to creating a fairer society.
Ultimately, the British government must acknowledge the systemic issues affecting young people's lives, including rising unemployment, insecure housing, and stagnant wages. It's time to address the generational crisis that's emerging, where young people are struggling to gain traction in their careers due to precarity rather than opportunity. The Chancellor has a crucial role to play in fixing this flaw and ensuring that all young people can build a brighter future for themselves.
In reality, many 16- to 24-year-olds who are unable to live at home with family end up in supported housing, where they often have to pay service charges and bills despite being financially dependent on the state. This can be a confusing situation, as these individuals are expected to contribute to society by working but face severe penalties for earning more than a small amount over their basic allowance.
For instance, if someone in supported housing earns £1 over their earnings allowance, they will lose 65p from their housing benefit, compared to just 55p for those living in the private rental sector. This punitive system discourages young people from taking on more hours of work, limiting their job prospects and earning potential.
The irony lies in the fact that this flaw arose during reforms aimed at ensuring people on benefits were better off in employment, rather than relying solely on government support. It's counterintuitive to penalize those who want to work more, especially considering the significant financial hit they can take for even small increases in earnings.
Rachel Reeves, the Chancellor, has a chance to rectify this situation with her upcoming budget. A new campaign, supported by 150 youth and homeless organizations, is calling for the earnings allowance to be raised from £5 to around £57 per week and for the housing benefit taper to be reduced from 65% to 55%. This would provide more financial support for young people in supported housing, enabling them to work and build a future without fear of losing their benefits.
The Treasury estimates that this new policy would gain them £5 million annually as more young people move into employment. Considering the long-term benefits of improved health, reduced crime rates, and enhanced job prospects, the net gain could be as high as £13 million per year. By making work pay for all, not just those on universal credit, the government can signal its commitment to creating a fairer society.
Ultimately, the British government must acknowledge the systemic issues affecting young people's lives, including rising unemployment, insecure housing, and stagnant wages. It's time to address the generational crisis that's emerging, where young people are struggling to gain traction in their careers due to precarity rather than opportunity. The Chancellor has a crucial role to play in fixing this flaw and ensuring that all young people can build a brighter future for themselves.
. Like, what's next? They're gonna make us pay rent while we're still living in our parents' basements? 
Seriously though, £57 a week is not a lot, and the taper rate is way too harsh. It's like they want to keep these young people in limbo, unable to move on from their " supported" housing. The idea that if you earn just £1 more than your allowance, you'll lose 65p of benefits is just cruel 
. And what's with the Treasury thinking that raising the earnings allowance to £57 a week would only gain them £5 million annually? That's like saying a £10 raise will magically boost productivity by £5. Not buying it 
. The real winners here are the politicians who get to make these decisions without having to actually, you know, live in poverty themselves 
it's like they're being given a hand up but then slapped with service charges too! 
They gotta earn just £1 over their allowance and lose £0.65 from their benefit - that's insane! 
The Chancellor needs to sort this out ASAP, it's not like these young people aren't trying 
. This policy sounds like a total mismatch - they're supposed to be supporting ppl in employment, not penalizing them for taking on more work. And dont even get me started on the housing situation 
. Its like, youre expected to pay service charges and bills just because you cant afford a place of your own anymore. The Chancellor's got this chance to fix it though 
, and if they do, it could be game changer for all those struggling with precarity 
it's like they're being punished for wanting to work more. £1 over their earnings allowance and suddenly they lose 65p in housing benefit? It's ridiculous! 
but it's so important that she addresses this issue. A £5 million annual gain might not seem like much, but trust me, it would make a huge difference to these young people's lives 
. And let's be real, the long-term benefits far outweigh the short-term costs. Improved health, reduced crime rates... it's all about creating a fairer society 
.
we're not talking about politics or ideology, we're talking about human lives 
. It's time for our leaders to put people over policy and make some real changes 
.
, our government's system for supporting young people on benefits seems super flawed, right? I mean, it's like they want them to work but also penalize them for trying too hard 
. If someone in supported housing earns just £1 more than their basic allowance, they could lose nearly as much from their housing benefit as someone in the private sector earning that same amount. That doesn't seem very encouraging 
.
By fixing this, the government can show they care about their citizens' well-being and want to help them build a better life. It's not rocket science; just treat people with some basic dignity and respect! 
. Maybe they should focus on creating more affordable housing options instead of just adjusting their benefits system 
. What if it just pushes people into underemployment or low-skilled jobs? That's still not what we want for our young people 
. It's like, they're supposed to be contributing to society by getting a job, but they're actually being penalized for trying to make ends meet 
. It's no wonder young people are hesitant to take on more work or earn extra cash – they'd rather lose their benefits than risk losing more money 
. If it means a £5 million annual gain in revenue, I say let's do it 
. I mean, the UK government's system for young people on benefits is literally designed to keep them from working more than like 2 hours a day 
. They get £5 a week for doing absolutely nothing and it's like they're being punished if they try to earn more 
!
. And don't even get me started on the £1 penalty... that's just brutal 
. This new campaign sounds like a solid idea - raising the earnings allowance and reducing the taper would give these young folks some real financial breathing room 
. And let's be real, if they're gonna penalize people for trying to work more, at least make sure it doesn't break the bank 
. We need some serious reform here - and fast 
. The Chancellor needs to show us they care about the future of these young people 
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and now they want to fix it by giving them more money if they work, but that sounds fishy too... is this some kinda trap? 
.
. We need to start valuing their worth more than just a number on a spreadsheet