Changes in monthly benefit payments for at-risk claimants are set to come into effect this week, with thousands of people benefiting from the new scheme.
The major changes are being introduced two years ahead of schedule, and are expected to help Universal Credit and housing benefit claimants.
The new payment means vulnerable people will be able to get more support with housing costs from this week.
The changes affect those who qualify for the shared housing rate (SAR) which determines how much young people can be paid for their rent.
Under an update to the eligibility rules, more vulnerable people, including carers and the homeless, will see their payments increase by up to £400 per month, Reports the Mirror.
The SAR applies to renters under the age of 35 who are claiming support through their local housing allowance (LHA).
Universal Credit uses the local housing allowance to calculate how much housing benefit claimants are entitled to – based on average rent prices in the local area.
Until now, most single people under the age of 35 could only claim assistance for the cost of a room in a shared house – known as the Shared Housing Rate, the lowest LHA band.
But a higher, one-bedroom rate is available for those who need to rent a single dwelling.
Under the new rules, caregivers will now be able to claim this higher one-bedroom LHA rate until age 25 instead of 22.
And anyone who stays in a homeless hostel, regardless of age, will also be able to claim the higher rate now, as the age limit has been removed.
In short, this means that those who fall in the weaker section will be able to get more money to help with the rent.
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A care leaver is a person who has been in local authority care (such as residential or foster care) for 13 weeks or more, beginning at age 14, and ending after age 16.
The government says that under the rule change, claimants get hundreds of pounds more than the cost of their rent.
For example, in Harlow and Stortford, a single carer of 23 years of age can expect to receive £ 387 extra housing assistance per month as a result of a lever change.
Welfare Delivery Minister Will Quins said: “These changes are an immediate boost to some of the most vulnerable youth in our communities.
“We know it’s important to have a safe, secure home on your feet and on the way to work often.
“By bringing these changes early, we are able to help more people right now as we all look to recover from the pandemic.”
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