YMCA Response to Housing Benefit Disregard

Denise Hatton, Chief Executive of YMCA England & Wales, said:

“We welcome the Government’s new Housing Benefit earned income disregards, coming into force today [5 October 2026]. This is an important step towards removing the financial cliff edge that has left young people in supported housing worse off when increasing their earnings. Allowing residents to keep more of what they earn should give more young people the confidence to start work, take on extra hours and build their independence.

“At YMCA, we see young people working hard to build a stable future, often without family support to fall back on. Across and alongside the sector, we have called for a system that supports young people’s ambitions, and it is encouraging to see this response from Government.

“But this must be the beginning of further reform. Every additional hour worked should leave someone better off. Housing Benefit’s taper rate remains at 65%, compared with 55% for Universal Credit. The Government must lower this rate so young people retain more of the money they earn as they progress in work.
“Universal Credit rates also need to be equalised for under-25s living independently. Their food, heating and other essentials do not cost less because of their age, and young people without parental support should not be expected to meet the same living costs with less help.

“Making work pay must also go hand in hand with making independent living possible. Too many residents are ready to move on but cannot find a safe, affordable home to do so. This additional barrier holds back their progress and leaves fewer spaces for people who need supported housing.”