The Benefits of Youth?: New report on young people in supported housing

Join the upcoming report launch in Birmingham (Wednesday 25th March, 2-4 pm) for a panel discussion on the challenges faced by young people in supported housing. Find out more here.

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Spring Housing and Commonweal have co-published a report titled The Benefits of Youth? that examines the affordability and employment challenges faced by young people in supported housing, and proposes practical solutions.

Download the Executive Summary  &  Complete Report

The report, authored by Spring's Thea Raisbeck, tracked the progress of young people in commissioned supported housing, who took part in a pilot delivered by the Department for Work and Pensions (DWP) and the West Midlands Combined Authority.

This scheme aimed to test financial support and simplification of the in-work benefits system, in recognition of the employment and housing barriers posed by high supported housing rents and the complex interplay between Housing Benefit and Universal Credit systems.

Employment and affordability challenges:

When young, supported housing residents enter employment or increase their hours, they encounter what is referred to as the 'benefits trap' or 'employment trap'. In this situation, individuals' benefit entitlements are tapered, making it difficult to afford high supported housing rents on lower incomes. As a result, residents can be discouraged from working due to the fear of falling into rent arrears and the risk of eviction.

The complexity of the benefits system also creates uncertainty about entitlements and procedures, fostering a culture of fear and mistrust amongst young people. Additionally, issues and complexities in Housing Benefit administration are often viewed as a burden by some supported housing providers, contributing to disincentives for providers to discourage entering work.

The report examines the relationship between supported housing settings, the benefits system, employment status, and life chances. A 2025 study found that young people who are not in Education, Employment, or Training (NEET) and are not living with parents or caregivers are over three times more likely to be in poverty compared to their peers (at a rate of 60% compared to 18%).

Moreover, research shows that youth unemployment can lead to multiple scarring effects later in life, including an increased likelihood of long-term economic consequences, mental health issues and the risk of homelessness.

The Proof of Concept (PoC):

Through the DWP's Proof of Concept (PoC) pilot, young people were subjected to income-related means-testing under current Housing Benefit rules and received rent contributions, enabling a smooth transition into work. The independent report details the experiences of residents and supported housing providers involved in the scheme.

Participants experienced temporary financial relief from working, including no longer having to 'survive' on Universal Credit, along with a range of positive outcomes related to their mental health and wellbeing, family connections, and social skills, as illustrated by the quotes below.

"Mentally, getting out and being around people with work is really good for me. I have a lot of energy and being in a hospital environment and active, it helps me, feels like real life. Work definitely makes it less lonely." – Jay

"Things like travelling to another city, leisure, sight-seeing, that's another world to me it would be too stressful and I would feel too guilty buying anything that wasn't basic. It's opened things up for me, my life up." – Raya

While the experiences of participants interviewed for this study were largely positive, the report identified key limitations with the scheme's design and implementation. These include its short duration, low participation rates and the perceived complexity and inflexibility of the criteria.

Solutions:

The report calls on the DWP to introduce further pilots and interventions focused on rent simplification and affordability, while ensuring longer durations of support and that personalisation, flexibility, and housing options are built into the design and monitoring.

As part of this, the study outlines a model in which, upon entering full-time employment, a resident’s weekly rent liability is reduced to the core rental charge, while Housing Benefit tops up the remaining service charges for a defined period, combined with intensive move-on support from providers.

The compounding issues of the complex in-work benefit system, practitioner misunderstanding, and 'baked-in' disincentives for both residents and providers affect supported housing residents regardless of age, despite recent budgetary commitments to reduce an unfair benefits ‘cliff edge’ and alter the taper rate. As such, the solutions outlined in this report aim to better connect housing and employment for all supported housing populations.

The report also recommends:

• The Government should ensure that the National Supported Housing Standards within the Supported Housing (Regulatory Oversight) Act (SHROA) reflect and respond to the challenges faced by supported housing residents when gaining and maintaining employment.

• Local authorities' homelessness strategies should align with their supported housing strategies and seek to commission, or support the development of, accommodation that genuinely meets the local needs of those experiencing homelessness.

• Supported housing providers should ensure all staff are sufficiently trained on the interaction between employment, supported housing, and Housing Benefit, and provide clear communication to residents about their right to seek employment.