The 16 hour rule, defined in regulations, affects entitlement to housing benefit and jobseeker's allowance (JSA). People may study for up to 16 hours a week and still be entitled to those benefits, but their benefit entitlement ends if they exceed 16 hours. Financial support for full-time students (with some exceptions) is the responsibility of the education and not the benefits system. The 16 hour rule exists to support that principle and, in the case of JSA, to ensure that people concentrate on looking for a job.
Members of the Foyer Federation continue to lobby for changes to the housing benefit rules to allow young people at risk of homelessness to receive housing benefit while in full-time study. We accept that some young people in these circumstances may need a second chance at learning and are considering how we might be able to help. We also continue to receive approaches to waive the JSA 16 hour rule in specific circumstances. Our response is to clarify the rule's purpose and effect and that the Employment and Training Act 1973 allows us to target unemployed people who face particular labour market disadvantage, by removing them from JSA and the requirement to actively seek work, instead paying them training allowances to undertake full-time training. We are using these arrangements in the ‘Adult Learning Option’ pilots which are supporting our customers towards achieving a Level 2 qualification. The budget that supports training allowances is finite and this route to full-time learning has to be carefully targeted on those most in need.