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Yesterday George Osborne announced the details of the coalition government’s emergency budget.
Jenny Edwards, Chief Executive of Homeless Link, the national umbrella organisation for frontline homelessness services, said,
“Whilst we welcome the Government’s aim to protect the most vulnerable, we are deeply concerned that the reform of Housing Benefit (HB) risks hitting people at risk of homelessness. With no sign that the shortage of social housing will change, the private rented sector has become the best chance of a home for many unemployed people or those on low incomes. It is vital that the drive to cut costs in the housing benefit bill does not inadvertently drive up homelessness. This would be a very costly own goal for government.
“There is a real risk to voluntary sector accommodation for people who are homeless and need support. We are hearing from our member organisations that many of their residents have been allocated to JSA quite suddenly, despite their vulnerability . The plans to introduce a 10% cut in HB for people who have been on JSA for more than a year could result in an impossible choice for charities - between taking a 10% drop in their rents or evicting their tenants into homelessness. Often homeless people already pay top up charges from their benefits. There is a clear correlation between top up charges and an increased likelihood of evictions and abandoned tenancies. We call on the Department of Work and Pensions to introduce special arrangements for tenants living in supported accommodation, which reflects their vulnerability and distance from the labour market.
"We already know that there has been a substantial drop in charitable donations to homelessness charities. This is now coupled with the prospect of a quarter of local government spending being cut at the time when the ring fence to Supporting People funds has been removed. Add to that the prospect of cuts from Housing Benefit and a rising flow into homelessness as families come under intense pressure. The risk is that we could enter a perfect storm. It is imperative that the Government joins up its strategies across these areas to ensure that upstream homelessness prevention saves communities and individuals as well as the costs of homelessness.”
ENDS
For more information, please contact Gill Perkins on 020 7840 4425 or 07881 921476.
