In assessing a person's means for unemployment assistance purposes, account is taken of any cash income the person may have together with the value of any capital or property. In addition, the value of any benefit or privilege enjoyed by an applicant, such as that of board and lodging in the family home, is assessed.
Under current arrangements, any claimant, irrespective of age, whose sole means are derived from the assessment of board and lodging in the parental home and who is entitled to less than £25 per week, has his or her payment increased to £25.
One of the principal arguments for the abolition or relaxation of the benefit and privilege rule for young unemployed people is that the operation of this rule encourages them to leave the family home in order to qualify for higher unemployment assistance payments and rent supplements. However, the limited research which is available highlights that the reasons for young people leaving home is a highly complex process with many different facets, including the pattern of full-time education participation and the nature of employment sought. Most interestingly, in this context, the research found that unemployed people were the slowest group to move out of the family home.
While these results must be interpreted in the light of the complex factors which prevail in the decision to move out, they do not lend support to a view that unemployed young people are more likely to leave the family home because of the qualification conditions for unemployment assistance or rent supplements. Nevertheless, my Department will continue to review this area in the light of any new evidence which becomes available.