YMCA research highlights that the benefits system is preventing some young people from gaining employment

Benefits are too low to live on, especially for young people under the age of 25, suggests YMCA, a leading youth organisation supporting young people and adults. The charity has released a comprehensive research report shedding light on the challenges faced by individuals living in supported housing when trying to enter the workforce.

The study, conducted across England and Wales, surveyed residents in YMCA-supported housing and examined their experiences and opinions regarding the obstacles imposed by the benefits system. The findings highlighted several key areas of concern that hindered young people’s ability to secure employment and transition into independent living.

One of the primary issues identified was the funding model for supported housing, which is nowadays mostly funded through Housing Benefit paid by local authorities. The interaction of Universal Credit and Housing Benefit tapering when residents take on paid employment leads to financial penalties for residents: they are often made financially worse off by working in comparison to solely relying on benefits. As a result, young people are discouraged from seeking work, which adversely affects their aspirations for independence and overall mental health. YMCA recommends that supported accommodation residents should receive a Universal Credit work allowance to enable them to keep more of their income and eliminate the financial disincentive for working.

The research also revealed that current benefit levels, especially for individuals under 25 years old, were insufficient to cover basic living expenses. Many young people expressed that they struggled to afford essentials such as food and electricity, making it challenging to focus on securing employment. In response, YMCA recommends the establishment of an Essentials Guarantee for individuals on benefits, ensuring that the standard allowance of Universal Credit always meets the determined costs of basic essentials.

Mental health emerged as another significant challenge faced by residents of supported housing, with nearly half of the respondents stating that their mental health struggles hindered their ability to find work or increase their working hours.