Charity calls on chancellor to break barriers to work for young people in supported housing

YMCA, the largest voluntary sector provider of supported housing for young people in England and Wales, has issued an open letter to the Chancellor of the Exchequer and the Secretary of State for Work and Pensions, urging the Government to address critical barriers preventing young people in supported housing from accessing employment.  

The letter, which has been endorsed by a group of charities and businesses, draws attention to findings from YMCA’s 2023 report, Breaking Barriers to Work.

The research reveals that systemic challenges, particularly within the benefits system, are trapping young people in supported housing in a cycle of unemployment.  

Key challenges highlighted in the report include:  

• The financial penalty of working: Residents of supported housing often lose essential housing benefits after working just 11-12 hours per week, leaving them unable to afford rent. 
• Lower Universal Credit allowances for young people: Those under 25 receive less Universal Credit than their older peers even if they are living without family support, further hindering their ability to achieve financial independence.  
• Practical barriers: High transport costs and work-appropriate clothing make it harder for disadvantaged young people to transition into work.  

YMCA-commissioned economic analysis highlights the significant benefits of reform.

By providing a Universal Credit work allowance to protect supported housing residents from financial penalties and equalising allowances for young people under 25, the government could welcome up to £11 in tax receipts and welfare savings for every £1 spent.  

Speaking about the open letter, Denise Hatton (pictured), chief executive of YMCA England & Wales, said, “Young people in supported housing face extraordinary barriers to work due to a benefits system that punishes, rather than rewards, ambition.

“This isn’t just a loss for them—it’s a loss for society and the economy. It’s time for bold action to unlock their potential, ensuring they can move forward with dignity and opportunity.”  

In addition, Sareena Bains, chief executive of Movement to Work, said: “Young people bring energy, innovation, and fresh perspectives to the workplace.

“Those in supported housing deserve fair opportunities and a system where work truly makes a difference to their lives. By breaking down barriers, we can create meaningful change for young people and pave the way for a stronger, more prosperous future for our economy.”

The letter concludes with a call for collaborative action to end youth unemployment and create a fairer system.