Open Letter
On February 18th, YMCA and a group of charities and businesses wrote to the Chancellor and the Secretary of State for Work and Pensions. The letter highlights the challenges that supported housing members face when looking for work, and calls for support to change youth unemployment.
It urges the government to adopt recommendations from YMCA England and Wales ‘Breaking Barriers to Work’ report, released back in 2023.
The Truth Behind Youth Unemployment
Even if they overcome the barriers to finding a job, they still face a number of financial penalties for working. Under the current system, they lose essential housing benefits after working just 11-12 hours, making rent unaffordable and trapping them in unemployment. Additionally, those under 25 receive a lower Universal Credit, even if they do live independently with no family support, making it even more challenging.
Unfortunately, this prevents young people from working, as they see no financial benefit of working, opposed to not. Not working has a detrimental impact on their mental health, debts, and their future careers.
Why This Change is Needed
We are dedicated to ending youth unemployment, but we need the Governments support to make this achievable.
CEO of YMCA England and Wales, Denise Hatton 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.”
The benefits system needs to be adjusted, so that young people are encouraged to work without facing further challenges. Research commissioned by the YMCA suggests that improving this current system could generate up to £18 in tax receipts and welfare savings for every £1 invested.
The letter calls for us to work together to show young people we recognise their potential and care. YMCA are looking forward to working with the Government, businesses, and other third sector organisations, to achieve this vision.
You can read the full letter here.
