WIDER POLICIES
Income-Related Policy

Overview

This section provides a review of tax and benefit policies which are relevant to homeless people, in England, Scotland and Wales.

Homelessness and Income 

Higher income for homeless people will not necessarily result in accommodation, since homelessness is seldom caused by one factor alone. But it seems reasonable to assume that it increases the chances of someone being able to obtain and maintain accommodation.

In particular, a higher or more stable income may be the key to preventing or solving homelessness problems for many of those who are less vulnerable, where economic circumstance rather than, say, substance misuse or poor mental health, is the primary cause of the homelessness. A key group here is people who are working but in low pay.

UK Income Policy

Tax and benefits policy is the responsibility of the UK Government (HM Treasury).

• Working Tax Credit: In April 2003, for the first time, the government introduced a tax credit, which benefits adults without children as well as families. But, unlike families, adults without children have to both work at least 30 hours a week and be aged 25 or over to qualify for the Working Tax Credit. This is likely to mean that many single homeless working people do not qualify, given that many working homeless people often only work part-time and that homelessness disproportionately affects young people.

Scotland Specific Income Policy

Scottish Executive policy is restricted to potentially lobbying the UK Government about issues of concern and to developing other policies to help people in low paid work, including the Employability Framework.

Wales Specific Income Policy

Welsh Assembly policy is restricted to potentially lobbying the UK Government about issues of concern and to developing other policies to help people in low paid work.

Commentary on Income Policy

There would be substantial benefits to many single homeless people if the eligibility criteria for the Working Tax Credit were made the same for single people as for families, namely by removing the restrictions relating to hours worked and age.

Page last modified on 30/06/2006 at 10:49