The measures are intended to dissuade young students from moving out of the family home. But thousands of over-19s will still miss out on qualifications, the Foyer Federation said.
The federation is campaigning for over-19s to be allowed to claim housing benefit when studying full-time for GCSEs, A-levels and equivalent vocational qualifications.
It believes a change in the rules would save the economy about £180m in the long term as young people gain better paid jobs and enter the workforce more quickly than those studying part-time.
Chief executive Carolyn Hayman said: "With the chancellor seeking to maximise revenue from every possible source, we hope he will keep an open mind on this."
The chancellor's announcement is part of the New Deal for Skills, which is under consultation until 30 September. The Foyer Federation will propose the change during the consultation.
The Department for Work and Pensions said it would examine the idea of extending housing benefit.
Source
Housing Today
Postscript
Download the Foyer Federation report The 16-hour rule – Past Its Sell By Date from www.foyer.net
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