The Chartered Institute of Housing (CIH) has expressed its concern that the government's proposed cuts to housing benefit for the under 25s will inhibit the government's growth agenda rather than support it. The proposal was one of the additional cuts to the welfare budget announced by Chancellor George Osborne during his speech to the Conservative Party Conference in Birmingham on 8 October.

According to the institute, which offers expert advice and opinion on housing issues, there are currently 383,650 households under 25 on housing benefit. If everyone in that bracket was disqualified the government would save £1.88bn: somewhat short of its £10bn target.

Removing help with housing costs for under 25s could significantly reduce people's willingness to move to take up a job opportunity. Many young people will also have paid tax and national insurance for years prior to needing to claim benefit.

"It appears contrary to the government's fairness principle that they should not have access to the same support as others," the CIH said in a statement.

Its chief executive Grainia Long explained: "It is impossible to create economic growth without a mobile workforce. It is crucial that everyone has access to help with housing costs to stimulate growth in the economy through jobs and stable homes. Blanket age based exclusions don't support growth and they fail the fairness test.

"Ministers have already said they want every new policy to support economic growth. It's unclear how these cuts will pass that test.