The Department for Work and Pensions (DWP) has announced that from June 2021 care leavers under the age of 25 and 16- to 24-year-olds who have spent at least three months in a homeless hostel will be eligible to receive the one bedroom benefit rate instead of the Shared Accommodation Rate (SAR).
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The Local Housing Allowance SAR is used to calculate the Universal Credit housing element, or housing benefit, available for most single private renters under the age of 35.
The higher one bedroom rate is currently available for single people over the age of 35 and care leavers under the age of 22.
Those eligible from June will see an average increase of £150 per month in housing support.
The move was originally set to be introduced in 2023 after being announced in last year’s Budget.
Will Quince, minister for welfare delivery, said: “This government is looking out for young people during the pandemic and this change will help improve the lives of thousands of our most vulnerable, giving them a greater chance of finding a place to call home.”
Great to see that the Shared Accommodation Rate exemption for #CareLeavers has been brought forward and will now be introduced from June 2021!
— Become (@Become1992) March 3, 2021
Thanks to @willquince for listening to our and others' call for this to come in before 2023, as previously announced.#Budget21
The Children’s Society said on Twitter: "Great to see the Shared Accommodation Rate exemption for care leavers up to the age of 25 brought forward from 2023 to June 2021. Thank you Will Quince for your brilliant work on bringing forward this change that will help care leavers with their housing costs.”
Good to see @DWP bring forward exemptions to the shared accommodation rate, ensuring independent living is more affordable for people under 25 who have experienced homelessness and care leavers. This will also help people to move on from emergency accommodation more easily. https://t.co/MEu0M1Oc9C
— Kate Henderson (@KateNHF) March 3, 2021
Dame Rachel De Souza, children’s commissioner for England, added: “Very pleased to see the promised exemption from the Shared Accommodation Rate for care leavers up to the age of 25 has been brought forward from 2023 to June 2021, something we have been calling for.”
#Budget2021: The gov has brought forward the implementation date for changes to the Shared Accommodation Rate (SAR) to June 2021.
— Turn2us (@turn2us_org) March 6, 2021
What does this actually mean? pic.twitter.com/R66oYXJCiE
Denise Hatton, chief executive of YMCA England and Wales, said: “This will make a massive difference in supporting those young people who have experienced homelessness to rebuild their lives.”
