Universal Credit

Work and Pensions written question – answered on 9th September 2013.

Alert me about debates like this

Photo of Lucy Powell Lucy Powell Labour, Manchester Central

To ask the Secretary of State for Work and Pensions what assessment he has made of the potential effect on youth unemployment of the introduction of housing costs contributions under universal credit.

Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions

The Government expects these changes to have a positive effect on youth unemployment for two reasons. First, taking a contribution from those aged 21 to 24 who are on benefit but on whom there is an expectation of work, increases the incentive to find a job; not least because the householder now has a direct interest in the non-dependant's employment position.

Second, unlike the current system, the contribution does not increase when the non- dependant moves into work or where their earnings rise. This removes a significant disincentive and helps to ensure that work pays.

Any effect on the overall level of youth unemployment will be contingent on the behavioural response to these improved incentives. It is not possible to pre-determine this response.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.