Spending Review and Challenges for Homelessness

Published by Homeless Link for Homeless Link in Housing and also in Central Government, Local Government

Homeless Link spots positive signals among the cuts

Today, Chancellor George Osborne announced the long awaited results of the Spending Review.  The deep cuts in many areas of public spending, including housing investment and the changes to Housing Benefit already announced, will have an impact in every local area. However, there are some positive signals in the overall picture.

Jenny Edwards, Chief Executive of Homeless Link, the national network of 500 frontline charities working to end homelessness and rough sleeping, said:

“We are relieved that the cuts at national level to the Supporting People programme are not as bad as we had feared, although of course we are sad to see any.  The maintenance of the Homelessness Grant at current cash levels is also welcome. The huge challenge will be to protect services for the most vulnerable at local level, in the face of  28% cuts to the grant to local authorities and the loss of the ring fence.

“The fundamental approach described for the Spending Review was to ‘ensure that expenditure is focused on protecting the quality of the key frontline services…that provide support to the worst off in society’.  The results in this area show ministers appreciated that third sector services providing housing related support are effective at preventing the high costs of homelessness. They deliver demonstrable outcomes for vulnerable people and savings for the public purse. 

“However, we should be under no illusion that that this same approach will apply in all local areas. Local authorities are facing unprecedented challenges. We call on them also to protect the quality of the key frontline services…that provide support to the worst off in society’ and take a hard look at efficiencies they can make in overheads as an alternative to cuts in services for the most vulnerable delivered by the third sector.

"We welcome the announcement that new capital funding, totalling £37.5 million, has been ear-marked for a new round of the Places of Change hostel improvement programme effective from April 2012. This is much needed to improve the quality of hostels for homeless people.

"The reduced investment in new social housing does leave us with a widening gap in building the homes we need. We call for a national plan to be drawn up to halve the number of empty homes that includes fiscal incentives to bring empty homes back into use." 

Homeless Link is preparing a more detailed analysis of the impact of today’s announcement. See our website.

ENDS