Residents in supported housing were found to be “discouraged” from seeking work under the benefits system, due to Universal Credit and Housing Benefit tapering when they take on paid employment.
Supported housing is mostly funded through Housing Benefit paid by local authorities. Once a person in supported accommodation works enough hours that their Universal Credit gets reduced to nothing, their Housing Benefit also starts to taper, leaving them responsible for paying their rent.
“This discourages young people from going into work, as most or all of their earnings end up being spent on their rent, and they don’t feel a financial benefit from working,” YMCA’s report states, adding that this can limit aspirations and worsen mental health.
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