The Regulations
The Universal Credit
(Housing Costs Element for claimants aged 18 to 21) (Amendment)
Regulations 2017 (2017/252) were laid before
Parliament on 3 March 2017 and came into force on 1 April 2017.
Early Day Motion 1014,
praying against the Regulations, had (at 10 April 2017)
attracted 83 signatures.
The Regulations implement a Conservative Party Manifesto
commitment and the announcement made as part of
the Sumner Budget
2015 when , then Chancellor,
announced the removal of entitlement to the housing element of
Universal Credit from young people aged 18-21, with some
exceptions, from April 2017.
Policy rationale
The stated rationale is to “ensure young people in the benefits
system face the same choices as young people who work and who
may not be able to afford to leave home.”
A related Budget announcement (summer 2015) set out plans to
introduce a Youth Obligation for 18 to 21 year olds on
Universal Credit from April 2017. Young people will be expected
to participate in an “intensive regime of support from day 1 of
their benefit claim, and after 6 months they will be expected
to apply for an apprenticeship or traineeship, gain work-based
skills, or go on a mandatory work placement.”
The measure was initially forecast to save £40m by 2020/21. In
response to a PQ answered on 24
January 2017 the Minister said around 10,000 people
would be affected, saving an estimated £95 million over the
course of the current Parliament. Savings estimates have since
been revised: the Spring Budget 2017 forecast savings of £65m
by the end of 2019/20.
Exemptions
The Regulations specify the categories of young people who will
be exempt from the removal of the
housing costs element of Universal Credit. These exemptions
include: those who may not be able to return home to live
with their parents; certain claimants who have been in work for
6 months prior to making a claim; and young people who are
parents. Section 2 of the full report provides information on
all the exemptions that will apply. Government guidance on the
exemptions has been published:Memo ADM 6/17.
Reactions
Organisations such as Shelter, Crisis, and Centrepoint welcomed
the limitation of the impact to 18-21 year olds as
opposed to the wider age group first mentioned of 16-24 year
olds, but are actively lobbying against the removal what they
describe as an “essential safety net” which can offer a
lifeline to young people faced with homelessness. Crisis has
said that the measure could undermine attempts to address
homelessness through the Homelessness Reduction
Bill which is awaiting Royal Assent. The Scottish
Government is opposed to the implementation of the Regulations
in Scotland.
