For years, a flaw in the benefits system meant that those who tried to work more hours, take on extra shifts or do better paid work were often left financially worse off.

Now, new changes to Housing Benefit rules mean residents aged 16-25 will keep more of what they earn.  Around 30,000 young people living in supported housing receive Housing Benefit.

Centrepoint welcomed the new changes by hosting a visit from Department for Work and Pensions Minister Stephen Timms MP to one of its East London supported accommodation services.  There, the Minister met Sadaf, a 19-year-old resident who talked about her hopes for the future.

Throughout her time with Centrepoint, Sadaf has overcome difficulties but remains committed to her long-term aspiration to study medicine and build a better future for herself. 

Like many young people transitioning towards independence, Sadaf viewed employment as a positive step towards self-sufficiency. Her intention in seeking work was not only to gain financial independence but also to fund her education and create future opportunities.

Sadaf said: "Working made me feel like I was moving forward. I finally felt like I was doing something productive and taking responsibility for my future."

However, gaining employment triggered a significant reduction in Sadaf’s Housing Benefit entitlement. The reduction created a substantial gap between her accommodation costs and available income, resulting in rent arrears that eventually approached £5,000.

Rather than creating greater financial stability, employment created financial uncertainty.  The impact extended far beyond finances alone. Housing uncertainty affected her future plans, educational opportunities, relationships and overall wellbeing.

Now that the system is working better, Sadaf is actively seeking employment again.  She said: "There were times when it felt like working made everything harder, but I still believe education and........

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