Housing benefit rules undermining employment incentives |
| Councils spend £1.9bn annually housing approximately 200,000 vulnerable working-age people in supported accommodation, where high rents create substantial barriers to employment, according to The Times Welfare Inquiry. Only 4% of tenants work, with average monthly rents of £1,250 nationally and £1,650 in London, plus service charges reaching £200. Some residents face debt, eviction or pressure to abandon employment because working reduces their housing benefits. Harry, a former care leaver, was advised to quit his apprenticeship after accumulating rent arrears, subsequently facing benefit sanctions. Ella Spencer, a London hostel worker, explained: "The vast majority of them do want to work. But they are better off on benefits." New rules introduced on October 5 aim to improve employment incentives for around 325,000 people. However, calculations suggest minimum-wage workers may retain just £3.20 per additional hour worked, raising concerns about whether the reforms sufficiently address financial disincentives. |
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