William Eichler 21 September 2022

Cost-of-living crisis to have ‘catastrophic’ impact

Cost-of-living crisis to have ‘catastrophic’ impact image
Image: Roman Bodnarchuk/Shutterstock.com.

The cost-of-living crisis is likely to have a ‘catastrophic’ impact on homelessness and so should be treated with the same level of urgency as the pandemic, the Prime Minister has been told.

A new report from the Kerslake Commission on Homelessness and Rough Sleeping considers the impact of the current economic crisis on the level of homelessness and sets out a number of recommendations for the Government.

It calls for the reintroduction of a temporary ban on evictions and for an immediate increase in the benefit cap to bring benefits in line with inflation.

It also urged the Government to raise local housing allowances so that they are in line with the bottom 30% of the market.

Commission chair Lord Kerslake said: ‘We once again need to see the strong, decisive leadership from the Government we did during ‘Everyone In’, backed by resources and funding. But this time the focus must be two pronged. It is no longer just about getting people off the streets, it is about ensuring people who are currently at risk of homelessness don’t end up on them.

‘Failure to act could see this become a homelessness as well as an economic crisis and the results could be catastrophic; with all the good achieved in reducing street homelessness since the pandemic lost, and any hope of the Government meeting its manifesto pledge to end rough sleeping by 2024 gone.’

Responding to the publication of the commission’s report, Local Government Association (LGA) chairman Cllr James Jamieson said: ‘By working together, councils, government and partners can ensure that people at risk of homelessness get the help they need and prevent homelessness.

‘In particular, we are calling for a fair, accessible and sufficient mainstream benefits system providing financial stability for low income households, protecting those who are unable to work, reducing health inequalities and linking effectively with key local partners to improve job opportunities and socio-economic wellbeing.

‘We’re also pleased the commission supports the expansion of the LGA’s peer review temporary accommodation model, as well as for the Government to carry out a consultation on a new Duty to Collaborate, which will encourage public bodies and councils to work together to prevent and tackle homelessness where it occurs.’

Rick Henderson, chief executive of Homeless Link and a member of the Kerslake Commission, commented: ‘The cost-of-living crisis, soaring rents and inflation are pushing people’s budgets to breaking point and leaving homelessness services themselves struggling to deliver vital support. While action on energy bills is welcome, this is not the only pressure, and without further Government action, we are headed for a fresh homelessness emergency.

‘We need to see a package of support that includes, among other things, an increase in Local Housing Allowance, so that it covers the cheapest third of rents – an intervention that during the pandemic enabled thousands of people to keep up with their rent and stay in their homes. We also call for sufficient and sustainable funding for the homelessness sector, which, in delivering advice, support, accommodation and essential amenities, acts as a lifeline for people who are forced into homelessness, and must be kept afloat.’

A Government spokesperson said: ‘We are giving councils £316m this year to ensure families are not left without a roof over their heads.

‘This is alongside the action we are taking to support families with the cost of living this winter through our £37bn pound support package. This includes £1,200 this year for the most vulnerable, helping them to pay their bills and stay in their homes.’

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