Homeless Link releases results of "credit crunch" survey

The current economic downturn is having a profound effect on the housing market and on voluntary agencies. Organisations in the homelessness sector are working within a more challenging external environment.

To better understand the situation, Homeless Link undertook a survey of its member organisations about the effect of the ‘credit crunch.’ The survey asked about the impact of the economic downturn in terms of the demand for their service, and the impact on their organisation’s income and costs. The key findings from the survey are highlighted below

Key findings

The survey found:

• Over half (51%) of the homelessness organisations surveyed have been affected significantly or very significantly by the recession, up from 34% in November 2008
• Over two thirds (64%) of respondents reported an increase in demand for their service. This is more than double the number reporting increased demand in November 2008
• Nearly three quarters (71%) of organisations reported that their income from savings and investments was affected, compared with 23% in November 2008
• Over half the charities surveyed reported that personal donations have been affected (52%), while over a third report that charitable grants (41%) and statutory funding (35%) are affected
• Costs are now more of a concern to homelessness organisations than in November 2008. 30% now report staff costs as an issue, while 22% report rent as an issue, up from 8% in November 2008
• Nearly two thirds of organisations responding to the survey have already taken steps to deal with the impact of the recession. A further 39% expect to do so in the future. The proportion of agencies reporting they have already taken action has doubled in the seven months between November 2008 and July 2009.

Learning from the research

Over half of the organisations surveyed say they have been significantly affected by the current economic downturn. This is a concern, not only regarding the impact on our members, but the knock on effect this may have on the services and support available for homeless and vulnerable people.

This survey provides evidence that organisations are treating the recession seriously and attempting to manage its effects. There is evidence of service review, planning, and of an awareness of the external environment. Action has already been taken and more is planned. Pressures on staff costs in some organisations have resulted in redundancies, staff redeployment or the replacement of paid staff by volunteers.

Together these results suggest that action must continue to be taken at least to maintain levels of service provision during the downturn. Increased demand on services will need to be monitored. Homelessness services and agencies working to prevent homelessness will themselves need access to resources to help maintain and develop their services. Homeless Link will continue to work with its members and the government to support this work.