A new report by the Institute for
Employment Studies (IES) reveals that some young people in
supported accommodation and in precarious employment (i.e.
zero-hour contracts, agency and temporary work), experience
financial difficulties caused by fluctuating benefit payments
that are affected by varying hours of work.
The report, entitled Experiences of Homeless Young People in
Precarious Employment, is commissioned by Centrepoint, the youth
homelessness charity. The study highlights the social and
financial risks that young people can encounter in this form of
‘non-standard’ work, due to a lack of guaranteed and regular
hours that can also restrict their access to key benefits if
income fluctuates from month to month.
The research conducted between December 2018 and March 2019
consisted of in-depth interviews of young people with experience
of homelessness, and staff working in third sector organisations
supporting homeless young people with issues related to
employment, housing and the benefits system.
An online survey was also completed by 50 young people with
recent experiences of engaging in non-standard employment and who
are currently living in Centrepoint supported accommodation or
receiving support from partner organisations.
The research found that unpredictable working patterns and
earnings can affect a young person’s ability to meet housing and
basic living costs, with 35% of respondents reporting that their
income was not enough to cover their basic needs of food, bills
and travel, while 38% said their income was not enough to cover
their rent.
Furthermore, the benefits and employment system are not seen to
be working well in tandem, with reports of young peoples’ welfare
payments being cut, in spite of their employment only being
temporary or their income fluctuating month-to-month.
Survey respondents were also asked if they had experienced any
issues with their benefit claim while undertaking precarious
forms of work over the past two years. Just over two-fifths
of the survey sample (42%) had encountered difficulties.
The homeless young people interviewed were confused about
Universal Credit’s interaction with employment and experienced a
variety of problems including:
• Benefits stopping without any explanation.
• Receiving an incorrect amount of benefit because the system is
not responsive to fluctuating hours. Benefit payments could
reflect their previous, rather than current circumstances.
• The amount of benefit received changing because their employer
paid them irregularly, making it difficult to manage their money.
• DWP staff updating a claimant commitment because the young
person had been offered precarious employment but had not
actually been given any shifts yet.
The issues surrounding the interaction of non-standard employment
and welfare payments had led many young people to accrue debts,
mostly in terms of rent payments owed to their housing provider.
Principal report author Jonathan Buzzeo said, “Our research
highlights that young people with experience or who are at risk
of homelessness can find it difficult to compete for more stable
employment opportunities.
“This can be compounded further by a benefits system that does
not respond well to fluctuating hours and the real risk of debt
accumulation due to incomes not meeting living costs.”
Centrepoint Senior Policy & Research Manager Abi Gill said,
“Young people who have experienced homelessness are often
entering adulthood without the family support networks most of us
benefit from, so they need to earn money to support themselves
financially. Temporary or zero-hours employment can be an
attractive option in this scenario, especially for those who lack
formal qualifications or experience.
“But the welfare system has not kept up with the growth in this
type of employment. It’s not right that young people who are
trying their best to earn money and support themselves are
penalised by an inflexible system that can leave them in debt and
in fear of taking on work in the future.
“Centrepoint is calling on the Government to review
Universal Credit to make sure young people are not pushed into
rent arrears, or deterred from working for fear of ending up in
debt.”
Download the free report: www.employment-studies.co.uk/publications
