A National Audit Office report on the effectiveness of government in tackling homelessness demonstrates the “urgent need for a new approach”, according to London Councils.
The NAO’s key findings include:
Homelessness has increased in recent years and is now at the highest level since comparable data collection began in the early 2000s.
A shortage of available housing makes it expensive for local authorities to house people in temporary accommodation, as well as harder for people to find a home.
Local authority spending on homelessness services has more than doubled since 2010-11. This puts severe financial strain on councils, with some telling the NAO that homelessness pressures could result in them issuing a Section 114 notice – effectively a declaration of bankruptcy. Central government’s funding arrangements for local authorities’ homelessness services remain “complex, fragmented, and sometimes uncertain”.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said:
“Homelessness represents a national emergency and urgently needs a new approach.
“Every homelessness case is a human tragedy. One in every 23 children in London is currently homeless and living in temporary accommodation. These rates of homelessness have massive impacts on individual wellbeing and opportunities, as well as contributing to unsustainable financial pressures on council budgets.
“But homelessness is not inevitable. As this report clearly demonstrates, government policy could be far more effective in tackling homelessness and getting to grips with its underlying causes. Better co-ordination across government departments, greater housing security, sufficient funding for councils, and more investment in building affordable homes are key to turning the situation around.
“London boroughs are determined to work with the new government and the Mayor of London in tackling this crisis – there is not a moment to waste.”
Although homelessness is a major challenge around the UK, the capital faces the most extreme pressures and accounts for almost 60% of all homeless households in temporary accommodation in England.
London Councils highlights its own estimate that more than 175,000 Londoners – equivalent to one in 50 residents of the capital – are currently homeless and living in temporary accommodation. This figure includes one in 23 children, meaning on average there is at least one homeless child in every London classroom.
Earlier this year London Councils’ research found boroughs were collectively spending £90m a month – or £3m every day – on temporary accommodation. The cross-party group warned these costs pose a “critical danger” to town halls’ financial stability.
London Councils’ policy priorities for addressing homelessness include:
Boost Homelessness Prevention Grant Funding. Local authorities play a vital role in supporting struggling households to avoid homelessness. Councils require an emergency funding increase to ensure local services have the resources needed in the face of rising levels of demand for support.
Remove the January 2011 cap on Local Housing Allowance payable for Temporary Accommodation in Housing Benefit subsidy. This is the amount of money local authorities can claim from the government for their temporary accommodation costs. Currently the subsidy has been frozen at 2011 rates – even though temporary accommodation has become significantly more expensive over the past 13 years. As the NAO highlights, the ‘subsidy gap’ is a major concern for councils. This is especially the case for London boroughs as they increasingly rely on relatively high-cost temporary accommodation options in B&Bs and commercial hotels.
Enable councils to buy more accommodation sold by private landlords. Providing increased capital investment for housing acquisitions could help councils address the shortage of temporary accommodation, particularly through acquiring homes being sold by private landlords as they exit the market.
Bring forward a cross-departmental strategy to reduce homelessness. Tackling homelessness must become a major priority at a national level with government departments working together – in addition to key partners such as local authorities – as effectively as possible. Boroughs welcome the government’s commitment to working in this way and are keen to play an active part.
