This policy removes a perverse incentive for young adults to leave the family home and pass the cost on to the taxpayer. This is about stopping young people slipping straight into a life on benefits, and it brings parity with young people who are in work but who may not be able to leave the family home, while an unemployed young person can do so.
We have always been clear that this policy will have a comprehensive set of exemptions, to make sure that the most vulnerable continue to have the housing support that they need, so the policy will affect only those who have no barriers to work and who are unable to return safely to their parental home. In addition, there is a time-limited exemption for those who have recently been in work. The policy will apply only to those in universal credit full service areas who make new claims or whose earnings drop below the in-work threshold after that date.
The policy will be implemented at the same time as the new youth obligation, an intensive package of labour market support for young people from day one of their claim. With new support available under the youth obligation, more young adults will move into work, significantly improving their current living standards and future prospects.