The government has admitted that it is examining a proposal which would stop people under-25 from receiving housing benefit.

It was revealed last week that the government’s policy unit was looking into the possibility of preventing young people under the age of 25 from receiving housing benefit and instead forcing them to live with their parents.

It is understood that the government is considering the change in a bid to make the welfare system ‘fairer’ and to cut spending on benefits.

A spokesperson for Number 10 told Inside Housing that a proposal had been put forward to the policy unit, which would now investigate the plans more fully.

The spokesperson said that it was at a very early stage and that it was far too early to say if this would be taken on by the coalition government or rejected out of hand.

‘It has been suggested as a policy but that is as far as it has gone,’ he said. ‘There are no plans to announce anything on it imminently.’