Housing Minister Mark Prisk pledged £210,000 towards the project, which will be led by St Basils youth homelessness charity.
Prisk announced said the government was “determined to help young people at risk of losing the roof over their head”.
“The Young People's Parliament gives us the chance to hear directly from those with first-hand experience,” said Prisk.
"The cash we've provided St Basils will help to give young people a voice on the issues that matter to them, and help us provide them with the solid foundations they need for a brighter future."
The announcement followed an appeal by young homeless people in December, who asked government ministers to provide a forum for their voices in a homeless youth manifesto.
The manifesto was presented to a cross-party panel of MPs including Conservative planning minister Nick Boles, Labour shadow housing minister Jack Dromey, and Liberal Democrat communities and local government minister Don Foster.
Earlier this year, research by the Law Centres Network showed council protocols, which are meant to ensure the needs of homeless 16- and 17-year-olds are met, were failing to ensure support reached teenagers.
Young people supported by St Basils welcomed the announcement, with one saying the government’s commitment to support young homeless people had made her less “sceptical”.
“I didn’t just want this to be another government initiative that looks great for the parties and gets people excited but then nothing comes of it,” she said.
“We need to follow through with the actions we stated we were going to do.
“Thankfully [the MPs] have listened and this has been done, and there is going to be a National Youth Homeless Parliament, which I personally believe is going to work massively well in eradicating youth homelessness.”
Members of the Homeless Young People’s Parliament will give their first presentation to ministers during the Ministerial Working Group on Homelessness in the autumn.
