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IMPACT OF THE COMPREHENSIVE SPENDING REVIEW ON HOMELESSNESS SERVICES

This article discusses the impact of the Comprehensive Spending Review on homelessness services, including reductions in funding and changes to housing benefit. It also outlines the actions that Homeless Link will take to support local services and campaign for changes.

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IMPACT OF THE COMPREHENSIVE SPENDING REVIEW ON HOMELESSNESS SERVICES

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  1. IMPACT OF THE COMPREHENSIVE SPENDING REVIEW ON HOMELESSNESS SERVICES Neelam Sunder West Midlands Regional Manager Homeless Link

  2. 1. Background to Spending Review • Treasury-led process to allocate resources across all government departments, according to Government’s priorities. • SR 2010 covers 2011-12 to 2014-15 • Homeless Link worked with members, Sitra, National Housing Federation and others • Two submissions sent to Communities and Local Government, the Treasury & other Government Departments • Great joint effort, praised by government departments

  3. 2. Our Main Asks Maintain investment in Supporting People at current levels Continue to use element of National Affordable Housing Programme to develop new supported housing and remodel existing housing stock Continue Places for Change capital & revenue investment Maintain the level of the Homelessness Grant Recognise adults facing multiple needs as a key issue Introduce no further measures to reduce the amount of HB available to vulnerable people before analysis of unintended consequences for vulnerable people and their access to housing & support services Flag individuals receiving housing-related support as vulnerable, requiring support within welfare reform & Work Programme Ensure housing, health & social care work together to maximise value of public investment and jointly invest in prevention & early intervention Maintain public health funding in real terms

  4. 3. Overview of key changes • Supporting People cut by 12% • over four years • Homelessness Grant kept at • same level • New, smaller Places of Change • programme • Local authority overall funding from CLG cut by 28% over four years • Virtually all funds to be de-ringfenced

  5. 4. External Context • HOUSING BENEFIT CHANGES: • Secondary legislation:HB caps from £250 - £400; change in calculation of LHA from 50th to 30th percentile of local rents; removal of £15 excess; support for disabled HB recipients to claim for a care worker’s room. Also single room rateshifted to apply to ages 35 and up (likely to be in subsequent secondary legislation). • Primary legislation: HB cut by 10% for recipients on JSA for over one year; shift to CPI from RPI for calculations (amongst other changes)

  6. External context continued • COUNCIL TAX AND SOCIAL HOUSING RENTS: • Fixed term social tenancies for new occupants • Proposals to change homelessness duty to force • claimants to accept suitable accommodation in • the PRS • Social housing rents proposed to be allowed to • rise to 80% of market rents (short term • ‘affordable rents’ to support building of 150,000 • affordable homes) • Council tax may be frozen in some areas • (funding provided via CSR to enable freeze)

  7. 5. What does this mean for 3rd sector services?

  8. 6. What does this mean for homeless clients? • Reduced opportunities for move-on • Reduced options for support, education, training • Uncertain economic outlook also threatens employment, and probably voluntary, opportunities

  9. 7. What is Homeless Link going to do? Cuts monitoring project – gathering intelligence on potential impacts now Support local services to campaign Campaign nationally to demonstrate gap between national intentions (or rhetoric) and local execution of cuts – continued work with Cross-Ministerial Group on Homelessness Lobby for changes to housing benefit proposals Fight for homeless people, fight for services

  10. 8. Find out more • CSR resources:http://www.homeless.org.uk/spending-review-response • Monthly Policy Round-Up:http://www.homeless.org.uk/policyroundup-dec2010 • Current and closed consultations (including Housing Benefit and Social Housing Reform):http://www.homeless.org.uk/current-consultations Charity no: 1089173 Company no: 4313816 Photos: Robert Davidson

  11. Neelam Sunder • West Midlands Regional Manager • neelam.sunder@homelesslink.org.uk • 07887 848562 Charity no: 1089173 Company no: 4313816 Photos: Robert Davidson

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