Thank you for contacting me about young people and the cost of living and for bringing the YMCA report to my attention.
Both I and the Government recognise that young people can be particularly impacted by the rising cost of living. Many will still be in education or just starting out in their careers and may not have had time to build up a financial safety net.
The Government has taken decisive and unprecedented action to ensure that all households are protected through the difficult months ahead, with targeted support made available to the most vulnerable, including vulnerable young people.
Under the Energy Price Guarantee (EPG), the typical household will pay no more than £2,500 on their energy bill until April 2023. Thereafter, the price cap will rise so that the typical household will pay no more than £3,000 until April 2024. The EPG will save the average household a further £500 and mean they will not have to face energy bills of £6,000 this winter.
In addition to the EPG, I strongly welcome the Chancellor’s announcement during the Autumn Statement 2022 that the Government will increase its cost-of-living support package by an additional £12 billion, taking the total from £37 to £49 billion.
This increase means that, in addition to the Cost-of-Living Payments already being made this year, the Government will provide extra one-off payments of £900 for the eight million households on means-tested benefits. The Chancellor also announced that the Government will provide £1 billion of extra funding by extending the Household Support Fund for another year.
Please see below my responses to the other specific policy issues you raised.
“Amending rules around the £400 energy rebate to include those living in supported housing”
It is my understanding that those living in supported accommodation are not eligible for the Energy Bill Rebate because they do not have a domestic electricity supply contract. However, for people who pay for their electricity as part of an inclusive charge with supply through a non-domestic contract, funding will be made available as soon as possible.
The Government is developing approaches to ensure that people in this category receive £400 equivalent support for energy bills this winter, working with local authorities, the devolved administrations, and commercial partners.
“Uprating welfare benefits in line with inflation”
I welcomed the Chancellor’s announcement during the Autumn Statement 2022 that the Government will continue to protect the most vulnerable by increasing benefits by 10.1 per cent for 2023/24, in line with inflation. This means that more than ten million households in receipt of working-age and disability benefits will see an increase in their benefit payments. The average uplift for households receiving Universal Credit will be around £600.
“Increasing funding to provide local authority grants to support local needs, such as food and winter clothes vouchers”
Through the Household Support Fund (HSF), the Chancellor has announced that the Government will provide £1 billion of extra funding by extending the fund for another year, bringing the total of the HSF to £2.5 billion. The HSF can be used to provide support with the cost of essentials like food, warm clothing, blankets, white goods and phone bills.
“Addressing the systemic issues with moving on from supported housing, as well as the barriers faced when trying to get into work”
The Government provides a range of employment support to different groups, including those who may live in supported housing. This includes measures such as helping claimants to make a Universal Credit claim, as well as providing specialised tailored support through Jobcentre Plus comprising of individual work coach support, priority access to the Work and Health Programme, and access to the Flexible Support Fund.
Moreover, the Department of Work and Pensions Youth Offer provides individually tailored work coach support to young people aged 16 to 24 who are in the Universal Credit Intensive Work Search group. This support includes the Youth Employment Programme, Youth Employability Coaches for young people with additional barriers to finding work, and Youth Hubs across Great Britain.