Housing Benefit (Under-25s)

Jim Shannon Excerpts

Wednesday 21st November 2012 Westminster Hall

[Mrs Glindon]

Yes, I agree with my hon. Friend, and I will refer to those statistics. Unless we have been through the same situation as those young people, none of us can imagine it, and I wonder how it will affect their future.

Of those aged under 25 who claim housing benefit, 17% are in work, but, as the Prince’s Trust has pointed out, they need that benefit to close the gap between their earnings and accommodation costs. Many young people earn only low rates of pay, and the national minimum wage for 16 to 17-year-olds is only £3.68 an hour; it is £4.98 an hour for those aged 18 to 20. Young people on apprenticeships earn only £2.60 an hour. The Low Pay Commission has found that young people are disproportionately likely to be paid the minimum wage for their age: 13% of young people aged between 18 and 20 are on the minimum wage of £4.98 an hour. Most young people who claim housing benefit are not in work, but young people all want to work. In a recent survey by the Prince’s Trust, young people who had previously been unemployed were asked how many jobs they had applied for, and the most common response was that they had made more than 100 applications.

The Government say that they want young people to take up their apprentice schemes, but apprenticeship wages are low, at £2.60 an hour. If the Government take housing benefit from those young people—particularly the most vulnerable, whom we want to get into apprenticeships—it will be yet another barrier to their future in work. The Prince’s Trust has also pointed out that young people who want to strike out on their own in business, and take up the trust’s enterprise programme, are often lone parents who claim housing benefit. They need housing benefit to supplement their incomes until their business is profitable enough to allow them enough salary to cover accommodation costs. Why should those young people be denied opportunity because they cannot afford a roof over their head, while the very rich get huge tax breaks from the Government?

The Government have said that some young people will be exempted from the cuts, but how will those exemptions be worked out, and who will be eligible? I hope that the Minister will tell us.

[Jim Shannon (Strangford) (DUP)]

The issue will be one of the biggest in my constituency, and I perceive great difficulties, come next year. Is the hon. Lady aware that there have been discussions with the Government and the Northern Ireland Assembly about changes that may help the system to work? Perhaps the changes proposed for Northern Ireland could be brought across to the rest of the United Kingdom. We are not getting everything we want for Northern Ireland, but I understand that we are getting some helpful concessions. Would the hon. Lady want to suggest that the Government might discuss that with her, and that they might enable the changes to be made UK-wide?

[Mrs Glindon]

I thank the hon. Gentleman for that intervention, and hope that the Minister will have listened to what he said.

Many young people live with their parents, because that is the only way they can manage work; they simply cannot live in a home of their own. The consequences for young people who cannot live with their parents are serious. Crisis has found that, as my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) said, one third of those accepted as homeless by their councils were under 25, and 10,000 had lost their home because their parents could not or would not house them. What will happen to those young people if housing benefit is cut?

[Mrs Glindon]

That is a concern of several agencies and organisations that are in the same boat. I hope that the Minister will say something about it.

Half the young people who receive housing benefit have children. Moreover, 28,000 young people receiving housing benefit are sick or disabled. How would the Minister expect those people to cope without any housing benefit at all? While places such as St Mungo’s provide accommodation to more than 17,000 people every night and help thousands more who are sleeping rough or are at risk of homelessness, we can only wonder what it would be like if those who rely on housing benefit were to lose it and no longer have that safety net. How would those figures be magnified?

I am pleased to say that in my constituency, there is a scheme called Maritime Court, which is run by Places for People as an individual support project. It is a customer-led service that offers support and guidance. Everyone using the scheme is encouraged to discuss their needs, and appropriate information is provided to assist them to make informed decisions. They get advice and support on issues such as life skills, benefits, budgeting, employment and education, with the ultimate aim of developing life skills to enable independent living within the community. The service offers a low to medium level of housing-related support. It has 24-hour staffing all year round. Young people get support for up to two years, living in accommodation there until such time that they are able to move into accommodation in the community. As has been mentioned, such projects are concerned about proposals for the future.

[Jim Shannon]

The issue of affordable housing is one that Barnardo’s, Save the Children and many other organisations are raising. Does the hon. Lady feel that the Government need to address the issues of affordable housing and of housing that is suitable within the housing benefit range?

[Mrs Glindon]

The hon. Gentleman has raised a particularly important point—one that we come back to time and again. When we see the low wages for apprentices and many young people, how else can they afford a home, with or without housing benefit?

I want to give a couple of examples to show how young people’s lives need to and can be turned around, and why housing benefit is crucial; obviously, I will use supplemented names. The following case study is from Maritime Court. A young woman, Sue, went into the project when she was 17, with a number of support needs. She had been re-homed and resided in one of Depaul UK’s lodgings within a family home environment, because she had been asked to leave her parents’ house. She had some skills but no experience of living on her own or managing a tenancy. She had led a chaotic lifestyle, as a lot of young people do, which was compounded because her mother had moved around, having had a lot of debt and rent arrears. Her parents had separated, and she had an awkward relationship with her mother. She was often left to fend for herself and her young sister from an early age. She received no family support when she was at home with her mother, so she was a young person on her own. She had also suffered domestic abuse from family members and friends, so she was a vulnerable young person. The support that she needed was with money management, how to develop relationships and tackling offending behaviour. She also had mental health and communication problems, to say but a few.

During Sue’s time with the scheme, the massive support she received enabled her to overcome many of her problems, and she became a mature person, who was able to deal with difficult situations. She has moved on through Maritime Court and has been able to work with North Tyneside council and get into independent living. The case study explains how the staff worked through issues with her and provided support. She has now moved on—she is starting a placement and is looking forward to training for a new career. That would not have happened had it not been for Maritime Court and for housing benefit.

Another referral that was made to Maritime Court was from North Tyneside council’s men’s direct access unit. Lee, as I will call him, had mild learning difficulties and cerebral palsy. He engaged well with staff from day one, but he seemed to rely on staff for company. He would often go out and have a good drink, but he was never aggressive. Staff realised that he was a very vulnerable person because the only way he could have friends was by allowing people into his flat in Maritime Court. He lived on the ground floor, so the staff moved him upstairs, which helped to solve some of his problems.

Lee was on a lot of benefit because of his disabilities, but he would often come back with no money once he had got paid, because people were taking advantage of him. The people at Maritime Court took over the management of his money and helped him with his benefit. He started to turn his life around. Eventually, staff found him a place in South Shields, which is across the river, in an area near where his girlfriend lives. With all the support he had, he was able to set up in Dock street in South Shields, and he is still doing extremely well there.

I could go on, but I cannot give more examples in the time allotted. What I want to put to the Minister is that, should the proposals go ahead, as I and others have said, thousands of young people who are now able to enjoy a roof over their head will be made homeless.