Make Work Pay campaign update

New rules will come into force which will remove a financial cliff edge for young people living in supported housing, helping them to keep more of what they earn, so their extra hours will finally pay off.

What was the problem?

For people living in the private rented sector, welfare support for housing is delivered through Universal Credit. Those living in supported housing receive support through Housing Benefit. When a young person starts working, Housing Benefit is tapered more steeply than Universal Credit, meaning that young people in supported housing were penalised.

This flaw meant that tens of thousands of young people were penalised for working and therefore disincentivised from seeking a better-paid job or taking on more hours, undermining their career progression and path to independence. Many of our member organisations saw young people forced to choose between career progress and keeping their accommodation.

The system disincentivised work and hindered ambitions.

What is changing?

From Monday 5th October, a new set of Housing Benefit earned income disregards will be introduced. These changes remove the financial cliff edge and mean young people in supported housing keep more of what they earn, ensuring that work pays. This is a huge win for young people and will help them to build their futures.

What did we do to change it?

Addressing this flaw in the system was one of our 10 policy asks we campaigned for as a Collective. Since 2024, we have written two open letters to the Chancellor of the Exchequer, urging that this injustice be addressed. Individual members of the Collective also ran their own campaigns on this issue.

We could not have achieved this monumental change without every one of our members raising their voices for the young people.

Written by Arthur Webber, Campaigns Officer at Centrepoint