CENTREPOINT / CHILD POVERTY ACTION GROUP / CITIZENS ADVICE / CRISIS / FOYER / SHELTER / YMCA / BRITISH PROPERTY FEDERATION

MPs must end welfare discrimination

A coalition of organisations is today calling on ministers to scrap a welfare rule causing hardship and homelessness among young and vulnerable adults.

Vulnerable young people are suffering because an obscure welfare rule caps the amount of help they can receive towards their rent. The single room rent restriction rule (SRR) limits housing benefit for under 25s to the average local rent for shared accommodation.

The campaign coalition, consisting of Centrepoint, Child Poverty Action Group, Citizens Advice, Crisis, Foyer, Shelter, YMCA and landlords’ organisation the British Property Federation, is pressing the government to abolish the rule by amending the Welfare Reform Bill. This week marks the tenth anniversary of the discriminatory rule being introduced.

In a briefing paper published today, the coalition says the single room rent restriction means that 87% of under 25s claiming housing benefit face an average shortfall of £35.14 a week between what they receive in housing benefit and what they have to pay in rent. In many cases the result is debt, eviction and homelessness.

A shortage of accommodation that meets the single room rent definition compounds the problem, making it almost impossible for many young people to find any affordable housing.

As a result, charities working with young homeless people are unable to move them on from supported housing to appropriate independent accommodation.

The coalition also warns that the rent restriction rule puts young people at greater risk of social and financial exclusion, making it more difficult for them to find work and hold down a job.

Citizens Advice Chief Executive David Harker said:

“Ten years of the single room rent restriction have pushed countless vulnerable young people into poverty, debt and homelessness, making it much more difficult for them to find work and hold down a job, and creating a legacy which may stay with them for years.”

Adam Sampson, chief executive of Shelter said:

“The single room rent restriction has left many young people out of pocket and struggling to pay their rent, plunging them into a cycle of homelessness, unemployment and poverty. After ten years, it's time for ministers to end this grossly unfair discrimination against young people.”

Angela Sarkis, National Secretary of YMCA England said:

“It is ten years since the introduction of Single Room Rent and MPs should now take the opportunity to end this discrimination against young people. As Government research has shown, this lower level of housing benefit has led to young people falling into a debt trap, being evicted from their homes, and in some cases, losing their jobs.

“Young people under 25 and in YMCA projects have exactly the same needs and living costs as those who are older, but they are trapped. They want to move on from the YMCA, freeing up a supported bed-place for another vulnerable young person, but they can’t find appropriate accommodation at the lower rate.

“YMCA staff are also working with young people in areas piloting a new system which aims to improve the situation. But they have told us that the problems are continuing and young people still find themselves unable to pay their rent.

“We don’t believe that the Government can continue to justify a policy based on age discrimination. What kind of message is this sending to our youth?”

Shaks Ghosh, Chief Executive of Crisis said:

“This discrimination against young people must end now. Every day our SmartMove network encounters young homeless people unable to find accommodation that they can afford. Those in most need are being forced to make unacceptable trades offs between buying food, clothes or paying rent. At worse they face the prospect of becoming homeless again. This is unacceptable. MPs should use the Welfare Reform Bill to abolish the restriction for good.”

Anthony Lawton, Chief Executive of Centrepoint, said:

“We know from working with young people that the single room rent restriction has left many of them facing serious rent arrears, personal debt and is a major contributor of youth homelessness. The government must end this discrimination against young people.”

Jane Slowey, Chief Executive of the Foyer Federation, said:

“The aim of Foyers is to help young people realise their potential, but their holistic approach is stymied time and again by the benefits traps they can fall into while living in the Foyer, and particularly when they leave. The Single Room Rent is a key factor in preventing Foyer residents from making a positive move into independence. This was highlighted in recently published research, 'What Happened Next' which looked at the progress made by over 100 residents leaving Foyers.”

Kate Green, Chief Executive of CPAG said:

“The single room rent restriction systematically discriminates against young people and compounds already often inadequate income for the poorest young people. For those young people who need to live independently the single room rent places them at serious risk of poverty and exclusion. An amendment in the autumn welfare reform bill could overcome this discrimination and we urge the government to seize the opportunity.”

Ian Fletcher, director of residential policy at the BPF said:

“Supporters of the Single Room Rent argue for it on theoretical grounds, but ignore the simple realities of the property market. In most areas there is a significant shortage of the type of property that supposedly the SRR is meant to pay for. As a result, those on the SRR are left between a rock and a hard place; either to go without a roof over their heads, or pay a rent far beyond their means. However, the outcome of this failure to grasp simple economics is not theoretical, but ends up in the real life tragedies and misery that we’re illustrating. Young people deserve a better start in life than this policy is giving them and we implore politicians to take immediate action.”

Recent cases include:

Tamara, 19, got a part-time job and decided to move out of the hostel where she was living and find a place of her own. But she could only get £50 per week housing benefit, and even the cheapest rents were £80 a week. After making up the rent she could not afford to pay bills and buy food. She ended up having to leave her job and move back into the hostel.

Dan, 24, had been homeless for eight months and was currently living in a hostel. He was unable to find any accommodation he could afford because of the single room rent restriction. His efforts to find work were frustrated by the fact that he could not give a permanent address on application forms.

Anna, 22, had taken on a tenancy that she could afford while she was working. When ill-health forced her to stop working she claimed housing benefit, but the single room rent restriction meant she faced a substantial shortfall. She got into rent arrears and was served with a notice to quit, but the council deemed her intentionally homeless as she did not wait to be evicted. She is now living in a hostel and suffering from depression.

Kirsty, 22, was eight months pregnant when she was abandoned by her partner. At the time she was living in one bedroom accommodation with a weekly rent of £80.55. Because of the single room rent restriction, she was entitled to only £2.90 a week towards her rent. After paying for her rent, council tax, fuel and water she had just £25 a month left for food and other essentials.

For more information contact:
Citizens Advice - Moira Haynes on 020 7833 7107 or 07790 019116
Shelter - Vicky Smith on 020 7505 2162 or out of hours on 07850901142
YMCA – Sarah Brown on 0845 873 6633 or 07920 801249.
British Property Federation - Andy Teacher on 020 7802 0113
Centrepoint - Sarah Roberts on 020 7423 6813 or 07989 302348
Crisis - Phil Power on 020 7426 3832.
Foyer Federation - Louise Meincke on 7439 2212

Notes to editors:

1. The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. Most Citizens Advice service staff are trained volunteers, working at around 3,400 service outlets across England and Wales. For more information see www.citizensadvice.org.uk Advice and information www.adviceguide.org.uk Volunteer hotline 08451 264264 (local rate)
2. Shelter believes everyone should have a home. We help more than 170,000 people a year fight for their rights, get back on their feet, and find and keep a home. We also tackle the root causes of Britain's housing crisis by campaigning for new laws, policies and solutions. Shelter launched the Million Children Campaign in April 2004 aimed at getting the Government to commit to ending bad housing for the next generation of children. Bad housing robs children of their health, education and a fair chance in life.
3. The YMCA is a leading Christian charity committed to supporting all young people, particularly in times of need. It reaches out to around 1m young people every year. The YMCA is an inclusive Christian Movement and our programmes and services are open to all, regardless of gender, race, ability, sexuality or faith. Founded 160 years ago, the YMCA in England is made up of over 140 associations working to ensure that young people have opportunities to thrive and contribute positively to their communities. We have seven main areas of work which are: Health and physical activity, Housing and homelessness, Skills, education and extended schools, Citizenship and advocacy, Crime prevention and youth justice, Parenting and family, and Training, work, and financial management. More information is available on www.ymca.org.uk.
4. The British Property Federation is the voice of property in the UK, representing companies owning, managing and investing in property. This includes a broad range of businesses comprising commercial property owners, the financial institutions and pension funds, corporate landlords, local private landlords, as well as all those professions that support the industry. The British Property Federation estimates that its members manage property assets worth approximately £200 billion. The property industry is a vital component of a successful economy. As an industry, commercial property contributes 6.2% of UK GDP, which makes it larger than the financial services industry and, combined with residential property, the sector employs nearly 2 million people. In 2003, net investment in productive property was £52 billion - 32% of total investment in the UK. Just over 20% of commercial property in the UK is held by UK-based pension and insurance funds, meaning that most people in the UK have a stake in our industry as pension fund members.
5. Crisis is the national charity for single homeless people and works year-round across the UK helping people fulfil their potential and transform their lives. Crisis helps rebuild the lives of homeless people by helping those trapped in the cycle of homelessness and raising awareness of their plight. The charity estimates that there are 380,000 hidden homeless people in Britain, living in hostels, temporary bed and breakfast accommodation, and squats or sleeping on the floors of friends and family.
6. Centrepoint is the national charity working to improve the lives of socially excluded homeless young people. It provides a range of services, including emergency night shelters and short stay hostels, specialist projects for care leavers, ex-offenders, young single parents, foyers and supported flats and floating support services. In April 2006 Centrepoint took over the running of Stopover services in South East London bringing the total number of young people supported to just over 2000 a year. These services provide the foundations from which young people can start addressing some of the issues that lead to them becoming homeless, and developing the skills they need for a sustainable future. For more information about Centrepoint visit www.centrepoint.org.uk
7. The Foyer Federation was established in 1992 to stimulate and promote the development of the Foyer concept in the UK. The Federation provides a range of services to operational and developing Foyers, raises awareness of Foyers’ work, and represents the movement at all levels of decision making throughout the UK.
8. Child Poverty Action Group is the leading charity campaigning for the abolition of poverty among children in the UK and for the improvement of the lives of low-income families. For more information see www.cpag.org.uk