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.
Denise Hatton, 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.”
Sareena Bains, Chief Executive of Movement to Work, added:
“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.”
YMCA and its partners are committed to working with the Government to ensure every young person, regardless of background, has the opportunity to succeed in their career and contribute to the community. The letter concludes with a call for collaborative action to end youth unemployment and create a fairer system.
Read the open letter: ymca.org.uk/ymca-open-letter
Full List of Signees:
- Denise Hatton, CEO, YMCA England & Wales
- Sareena Bains, CEO, Movement to Work
- Edward Siegel, CEO, Charity Bank
- James Musgrave, Finance Director UK&I and Board Sponsor for Social Purpose, Hays Plc
- Ashby Jenkins, CEO, Ashby Jenkins Recruitment
- Helen Taylor, Associate Director, C2 Recruitment
- Polly Neate, CEO, Shelter
- Rick Henderson, CEO, Homeless Link
- Emma Haddad, CEO, St Mungo’s
- Cllr David Fothergill, Chairman of the Community Wellbeing Board, Local Government Association
- Francesca Albanese, Executive Director of Policy & Social Change, Crisis
- Balbir Chatrik, Director of Policy and Prevention, Centrepoint
- Phil Kerry, CEO, New Horizon Youth Centre
- Carol Gallagher, CEO, Doorway
- Jonny Whitehead, CEO, Herts Young Homeless
- Mark Wood, CEO, Colchester Korban Project
- Mike Jarman, CEO, The Zone Plymouth
- Dom Wood, CEO, 1625 Independent People
- David Smith, CEO, Stepping Stone Projects
- Leon Ward, CEO, MyBnk
- JJ Tatten, CEO, The Warren Youth Project
- David Chaffey, CEO, BHT Sussex
- Esther Barrett, Director of Quality, Performance & Safeguarding, P3 Charity
About YMCA England & Wales
- YMCA England & Wales comprises 84 member YMCAs working to ensure young people have opportunities to thrive and contribute positively to their communities.
- YMCAs operate in 708 different communities across England and Wales, impacting the lives of more than 400,000 people every year.
- YMCA is the largest voluntary sector provider of supported housing for young people in England and Wales, providing a bed for 10,432 people each night and collectively helping more than 20,000 people experiencing homelessness each year.
- YMCA works with 228,000 children, young people, parents, and carers to provide the best possible start in life, offering support into their teenage years and beyond.
- YMCA England & Wales enables more than 23,000 people every year to engage in education and training to improve their opportunities in the job market.
- We welcome 107,000 people through our doors to partake in healthy living activities, helping people of all abilities and experiences to look after their health and wellbeing.
For further information, please visit: www.ymca.org.uk