Letter: A lack of strategic sense on unemployment benefit

Sir: Your report (11 August) that the Treasury is suggesting a cut in entitlement to unemployment benefit fills me with dismay.

The last social security cuts, in 1988, led to a dramatic increase in youth homelessness. If the Treasury has its way again this year, a similar increase is on the cards. Under the Treasury proposals, entitlement to unemployment benefit will be cut from a year to six months. After this period, claimants will be dependent on income support.

Unemployment benefit is currently pounds 43.10 a week. Income support is paid at two rates: pounds 42.45 for those aged 25 and over, but only pounds 33.60 for those aged 18 to 24. The Treasury proposal will therefore hit 18- to 24-year-olds particularly hard. Young people in this age group who are currently receiving unemployment benefit are likely to have been working for some time and now be living independently away from the family home.

Despite the fact that in the current recession it will take them longer and longer to find another job, they now face the prospect of their income dropping by more than 20 per cent, from pounds 43.10 to pounds 33.60, a week after six months. You simply cannot live on pounds 33.60 a week and so the consequence for many of these young people will be homelessness.

Prior to the 1988 social security changes, we warned that they would lead to massive youth homelessness. Nobody listened and, sadly, we were proved correct. We now face the prospect of the same thing happening again and a new generation of young people joining the beggars and homeless on the streets.

Yours sincerely,

NICK HARDWICK

Director

Centrepoint Soho

London, WC2

11 August