£164 million hostel network for young homeless

The Communities Secretary pledged to end the use of B&Bs for youngsters which she said was "unacceptable for a civilised society."

Under plans costing the taxpayer £164 million, councils will be asked to organise a national network of "lodging centres."

Trained volunteers will offer support to the teenagers - many who are forced to leave home by their parents - and be reimbursed for the costs of food and accommodation.

Homeless youngsters could use the spare rooms as "breathing space" while they improved relations with parents.

After the temporary accommodation, they could be housed permanently, or choose to return to their family home.

Miss Kelly unveiled the plans on the 40th anniversary of the groundbreaking television drama Cathy Come Home.

In her first speech on the issue, she claimed that the Government had "turned the tide" on homelessness but now had to address its fundamental causes.

She added: "In my view, it is unacceptable for a civilised society like ours to expect homeless 16- and 17-year-olds to be on their own in bed and breakfast hotels."

"These are young people at their most vulnerable, who are a short step from throwing away their future and never realising their potential."

The Minister said from 2010 no 16 or 17-year-olds would have to go to a bed and breakfast except in an emergency.

The number of rough-sleepers on the streets each night has fallen from 1,800 eight years ago to 500 today, but nearly 94,000 households still live in temporary accommodation.

But more than 250,000 people under the age of 25 in England and Wales could be classified as homeless, according to charities.

Parents no longer willing to have their children under their roof is now the biggest single cause of homelessness - one-in-four of more than 90,000 new cases accepted by local authorities each year.

Big Issue founder John Bird said 80 per cent of the people who sell the magazine come from local authority support - suggesting they had left home as teenagers after family breakdown.

He told Radio 4's Today programme: "We have to start educating people and training people on how they bring up families."

Angela Sarkis, YMCA National Secretary, said: "Leaving vulnerable young people to struggle in often cramped and dangerous conditions has been a scar on our conscience for far too long."

Leslie Morphy, chief executive of homeless charity Crisis, said: "Forty years on since Cathy Come Home we need to be much more ambitious and redouble our efforts to end homelessness."

"We need to see real and substantial commitment to funding affordable permanent housing and innovative solutions that help homeless people re-skill, find work and build positive networks."

Shadow Local Government Secretary Caroline Spelman said: "Any measures which genuinely tackle homelessness are welcome but there is a great deal of work to do as the number of families in temporary accommodation has doubled since 1997."