Make Work Pay - Youth Chapter Collective Open Letter to Chancellor Rachel Reeves
12 October 2025
Dear Chancellor,
We are the Youth Chapter Collective, a collective of over 150 youth, homelessness and housing association organisations who urge you to support our campaign to Make Work Pay for 30,000 young people impacted by the benefit trap.
Supported housing should be a bridge to stability. However, the current benefits system punishes homeless young people living in supported housing who are just trying to work. Thousands are finding that their path to more money and an independent future is blocked because their housing benefit is tapered faster than their pay would increase if they started working more hours – leaving them with less overall income and struggling to pay for essentials.
The economic impact of fixing this issue
We estimate that this issue affects over 30,000 young people who could find their employment opportunities limited because of this benefit trap.
We fully recognise the economic challenges facing the Government and the need for fiscal responsibility. However, this is a clear example of a policy design flaw that is limiting potential, trapping a group of young people in low-income work and welfare dependency, and in some cases leaving them economically inactive.
There are two targeted and cost-effective measures that would directly address this issue:
Raise the Housing Benefit earnings disregard from £5 to £57 – increasing the amount young people can earn before their benefit is reduced, and helping to smooth the cliff-edge that currently discourages work.
Reduce the Housing Benefit taper rate from 65% to 55% – to bring it in line with Universal Credit and create a consistent and fair system.
If these changes are made, modelling based on impacted 16-24 year olds estimates that the Treasury would save nearly £5 million in just one year from the fiscal impact of these changes. The Government would also have a net benefit of almost £13 million when accounting for unmonetised benefits, such as mental and physical health of young people affected. The actual saving is likely to be much higher as there are thousands more people living in supported accommodation over 25.
Together, these changes would allow young people in supported housing to see their incomes rise with each hour worked, helping them move toward financial independence and leave homelessness behind. This would also taper people’s earnings in line with the private rental sector, ensuring equality for young people in supported housing and their peers.
We urge you to bring forward this modest but impactful reform – we cannot afford to write off thousands of young people who are ready to work.
A benefit system that disincentivises work and hinders ambition is a broken system. On 26 November you have a chance to fix it, we urge you to take it.
We would welcome the opportunity to meet with your Department, ahead of the Budget, to discuss this further. We look forward to your response.
Yours sincerely,
akt
Aberdeen Foyer
Adullam Homes
Alabare
Amber
Ayr Housing Aid Centre
Become
BHT Sussex
Broxtowe Youth Homelessness
Buttle UK
Canopy
Cardinal Hume Centre
Caring in Bristol
Carlisle Key
Centrepoint
CGL - Change, Grow, Live
Changing Lives
Christian Action Housing
Cirencester Housing for Young People
Citizen Housing
Clarion
Clocktower Sanctuary
Coatham House Projects
Commonweal
Community Campus 87
Coops Foyer
Coram
Coram Voice
Crossroads Derbyshire
Depaul Ireland
Depaul UK
Doorstep
Doorway
Drive Forward Foundation
End Furniture Poverty
End Youth Homelessness Cymru
Every Youth
Evolve Housing + Support
Extern
Falcon Support Services
Fat Macy's
Foyer Federation
Fully Focused (Million Youth Media)
G15
GISDA
Glass Door
Gloucestershire Nightstop
Greater Change
Greater Manchester Better Outcomes Partnerships (GMBOP)
Greater Manchester Mayor's Charity
Growth Company
Habitat for Humanity Great Britain
Herts Young Homeless
Home Connections
Homefinder Uk
Homeless Link
Hopestead
Impact Initiatives
Include Youth
Inspirechilli
iWill
Key Unlocking Futures
Korban Project
L&Q
LandAid
Latch
Lifeshare
LivShare Housing & Consultancy
Llamau
Local Solutions
London Youth
MACS Supporting Children & Young People
Mayor's Fund for London
Missing People
Moving On
MTVH (Metropolitan and Thames Valley Housing)
Money Ready
My Life My Say
Network Homes
NHYC
Nightsafe
Nightstop Network
On Side
Only a Pavement Away
Origin Housing
Oxfordshire Youth
P3 - People Potential Possibilities
Park Lodge Project
Partnership for Young London
Proxy Address
Ravenhead Foyer
Red Thread
Redditch Nightstop
Rock Trust
Roundabout
Rush House
Safe and Sound Homes (SASH)
Settle
Shelter Community
Simon Community
SLEAP
Southend YMCA
Spring Housing Association
Springboard Opportunities
St. Christopher's Fellowship
St. Petrocs
St. Basil's
Stepping Stone Projects
Stonewall Housing
Street Soccer
Streetlink
Sussex Nightstop
Switchback
The Bridge
The Children's Society
The Running Charity
The Warren
The Whitechapel Centre
The Zone, Plymouth
Two Saints Limited
UK Youth
Verve Place
Volunteering matters
Wipers Youth
Wyre Forest & South Worcestershire Nightstop and Mediation Service
YMCA Downslink
YMCA East Surrey
YMCA England & Wales
YMCA Exeter
YMCA London City & North
YMCA Scotland
YMCA Trinity Group
You Thrive
Young Camden Foundation
Young Devon
Young Women's Housing Project
Your Housing Group
Your Place
Youth Access
Youth Concern
Youth Employment
YMCA
More information: Making work pay in supported accommodation | Centrepoint