Citizens Advice Scotland has issued a briefing detailing the effects that the financial crisis and welfare reform are having on young peoples’ ability to afford a home, indicating that they are being forced to stay with parents, are priced out of the owner occupier housing, unable to access social housing and have access only to expensive private rented accommodation.
The average cost of renting a house now stands at £691 a month. The situation is leading to a disproportionate level of young people identified as priority homeless, which between 2007 and 2009 rose by 40% in Scotland.
Read the CAS Young People and Housing report.
The situation is likely to worsen, as from April 2012 young people who previously qualified for contributory Employment and Support Allowance (ESA), under ESA ‘youth’ provision, will no longer be entitled to the benefit. For those moved to income related ESA, the DWP predicts a loss of up to £25 per week. They estimate that around 10% of claimants will not be able to claim income related ESA because they either live with a partner, or having access to other income, such as savings. This means that if they are living with a partner who is in full time employment they will receive nothing.
Learn more about the abolition of contributory based ESA for young people in the documents below.
DWP Impact Assessment
ESA Letter from Jobcentre Plus.