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Centrepoint Resident Welcomes Minister to Mark New Changes to Housing Benefit
Centrepoint says the changes will help 30,000 young people in supported housing keep more of their earnings and reduce rent arrears.
Pensions Minister Stephen Timms visited a Centrepoint service in East London to mark new Housing Benefit rules allowing residents aged 16-25 in supported housing to keep more of their earnings.
Previously, gaining employment triggered significant reductions in Housing Benefit, creating a gap between accommodation costs and available income that caused rent arrears approaching £5,000 for residents like Sadaf, a 19-year-old.
Sadaf described the old system as a barrier, saying, "Working made me feel like I was moving forward." The financial uncertainty affected her educational opportunities and wellbeing before the policy change.
Seyi Obakin OBE, Chief Executive Officer at Centrepoint, called the change a "landmark win" for young people, stating the previous system punished work and he hopes this creates smoother transitions into employment.
Around 30,000 young people living in supported housing receive Housing Benefit. Centrepoint emphasizes that with the right support, young people can escape homelessness and build stable futures.