Almost a million young people to be hit by universal credit cut

The charity’s research finds that the cut will adversely impact young people, who are already affected by low wages and poor housing opportunities.

The end of the benefit uplift will increase the risk of debt and reliance on food banks among young people, says the charity.

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The uplift was brought in amid the Covid-19 pandemic in 2020 but is being removed on 6 October this year.

As of June there were 918,000 young people aged 16-24 claiming universal credit. With the uplift, young people currently receive £344 a month but this will fall to the pre-pandemic level of £257 from next month.

In addition, young people in receipt of the benefit already receive less than over 25s, who receive £411 with the uplift and £324 without, YMCA points out.

YMCA says that young people leaving supported accommodation, who rely on the benefit, will be among the worst affected, as it leaves shared housing as the only affordable option, which is “often not suited to those with complex lives”.

“They do not have the same back-up or support, and are trying to forge their new start with limited money in the bank”, adds the charity’s Of Little Benefit report.

Living costs in specific areas are also examined to highlight how young people will be impacted.

After rent and bills, a young person in social housing in Blackburn will see their monthly income more than halved from £170 to £83 when the uplift ends.

Meanwhile, in Hastings a 19-year-old working 20 hours a week at minimum wage in social housing will see their monthly income drop from £313 to £266. For young claimants in the East Sussex town in shared housing the drop is £419 to £332.

NEW 🚨 | YMCA's latest research into government figures illustrates that once the £20 uplift is removed, many more young people on #UniversalCredit risk being pushed beyond the breadline and even further into debt.

Our statement in full.https://t.co/8yAGaq1pGz

— YMCA England & Wales (@YMCAEng_Wales) September 15, 2021

“By removing the uplift, the choices a young person has when moving out of supported housing narrow dramatically, impacting the type of accommodation they move in to, access to employment opportunities, and how much money – if any – they have left after covering necessities,” said YMCA England and Wales chief executive Denise Hatton.

“While YMCA appreciates that difficult decisions must be made in order to support the economic recovery of the country after a truly traumatic time, the removal of this lifeline is not a feasible or a fair decision.  

“Therefore, YMCA is asking the government to maintain the £20 weekly uplift to ensure young people striving for independent living are able to find the best possible fit while pursuing a career or learning opportunities – without an increased risk of falling into debt. The choice should never be one or the other.”