The Benefits of Youth?
Spring Housing and Commonweal Housing have co-published research that examines the affordability and employment challenges faced by young people in supported housing and proposes practical solutions.
Read the report
Summary
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The Benefits of Youth? report, authored by Thea Raisbeck of Spring Housing, 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 (WMCA).
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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.
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Through interviews with young people and key stakeholders (including supported housing practitioners), this independent review provides a clear overview of the pilot's outcomes and experiences for those involved.
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Employment and Affordability Challenges
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Young supported housing residents entering employment or increasing their hours often face what is known as the 'benefits trap' or 'employment trap'. In this situation, individuals' benefit entitlements are tapered, making it difficult for supported housing residents on low incomes to afford their rent. As a result, residents can be (and are) discouraged from working due to the risk of falling into rent arrears and facing eviction.
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The complexity of the benefits system also creates uncertainty about entitlements and procedures upon joining the workforce, fostering a culture of fear and mistrust amongst young people.
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Additionally, issues and complexities in Housing Benefit administration are often viewed as a burden by some supported housing providers. Unclear procedures and the fear of 'getting it wrong', or of affordability issues leading to arrears and subsequent loss of income, create disincentives for providers to encourage residents to enter work.
The issue​
Youth Unemployment
The report examines the relationship between supported housing settings, the benefits system, employment status and life chances.
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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%).
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Research shows that youth unemployment can lead to multiple ‘scarring’ effects later in life, including long-term economic consequences, mental health issues and risk of homelessness.
The Proof of Concept
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The DWP's Proof of Concept (PoC) pilot aimed to test financial support
and simplification of the in-work benefits system for young people living
in commissioned supported housing who enter employment.
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Through the scheme, young people were subject to income-related means testing under current Housing Benefit rules and received rent contributions, enabling a smooth transition into work.
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The scheme, which ran from March 2024 to March 2025, enabled young people to receive support for a 6-month period. It received relatively low take-up, with only 42 young people from across the WMCA taking part. This independent review examined the experiences of 11 young people involved in the scheme.
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Participants reported experiencing 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.
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"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
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"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
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Overall, 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.
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Solutions ​​
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​The report calls on the DWP to introduce further pilots and interventions focused on rent simplification and affordability, while ensuring longer support durations, and personalisation, flexibility, and housing options are built into the design and monitoring.
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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. At the same time, Housing Benefit tops up the remaining service charges for a defined period, combined with intensive move-on support from providers.
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The compounding issues of the complex in-work benefits 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.
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Recommendations:
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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.
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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.
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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.
Policy developments
In July 2026, the Government introduced the Housing Benefit (Earned Income Disregards) Regulations. In effect from October 2026, Housing Benefit will be calculated like Universal Credit, ensuring that supported housing residents have the security to earn more from work before their benefits are tapered.
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This measure is an important step in the right direction toward eliminating employment barriers for individuals in supported housing. ​
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If you would like to discuss the report or the challenges faced by young people in supported housing, please email Fraser Maclean, Commonweal’s Policy and Communications Manager, at FraserM@commonweal.org.uk.
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Exempt from Responsibility?​
In 2019, Commonweal commissioned a report, also written by Thea Raisbeck, entitled Exempt from Responsibility, which exposed the underregulated exempt accommodation sector.
This landmark report revealed an ‘accountability deficit’ in the non-commissioned exempt accommodation sector and, for the first time,
demonstrated the scale of the problem. It showed the extent to which tens of thousands of vulnerable people across the country were being exploited by landlords, due in large part to minimal pre-tenancy checks, a weak regulatory framework, and a harmful lack of monitoring.
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In recent years, the Government has announced measures to improve standards in the exempt and wider supported housing ecosystem, including the Supported Housing Regulatory Oversight Act 2023, which introduces national standards and a licensing framework enforced and managed by local authorities.
