Withdrawing housing benefit from those claiming JSA for over a year could hit the most vulnerable, warns St Mungo’s
22 June 2010
Update - a letter from St Mungo's in Inside Housing magazine, 23 July
St Mungo's warned that housing benefit changes in the "tough but fair" emergency budget announced today could hit the most vulnerable as they seek to get back into work.
Charles Fraser, Chief Executive, said: "These cuts are going to hurt. Our worry is that, as spending decisions are made by central and local government over coming months, the people they end up hurting might well be the most vulnerable.
"It is widely accepted that homeless people endure exceptional inequality - health inequality and income inequality in particular. Budget measures which treat unequal things equally will not only keep them at the bottom of the pile but make it even more difficult for them to pull themselves up and out. This is the time to turn the notion of 'a hand-up, not a hand-out' into reality, and do this by creating the environment within which opportunity can flourish."
One particular detail announced as part of the package to reduce the cost of housing benefit sees those on Jobseekers Allowance for over a year having their housing benefit chopped by 10%. St Mungo's is to question the Government whether this measure is really "unavoidable".
St Mungo's fears the impact of this will be to penalise those furthest from the labour market and most in need of support. At present the majority of Jobseekers Allowance claimants don't receive intensive support until after the first 12 months of their claim.
Yesterday St Mungo's published new research, Work Matters, showing that homeless people have much higher levels of need, in relation to skills, health and housing than the general population and that existing services through Jobcentre Plus are failing to support homeless people into work.
Charles Fraser said: "A majority of our clients have been out of work for more than five years and we welcome this Government's commitment to reforming the welfare to work system in order to challenge this unacceptable state of affairs.
"However, what is clear from our report is that sanctions will never be enough to end long term unemployment. We must balance sanctions with support.
"The announcement to reduce housing benefit by 10% for those on Jobseekers Allowance for over a year is very concerning. We'll be asking the Government to keep 100% housing benefit in place until they've clarifed how they see this working in practice - especially given their commitment to protect the most vulnerable."
Currently St Mungo's provide intensive employment support to thousands of homeless people every year, encouraging them not only to get into work but also to get the skills and confidence which means they can sustain employment.
ENDS
Read the full Budget details on the HM Treasury website include the Jobseekers Allowance and housing benefit details on page 40.
Read the Budget statement in full
For more information, contact Judith Higgin, St Mungo's, on 020 8762 5645, email judith.higgin@mungos.org
Related content
- About St Mungo's - Internal page
- Our Services - Internal page