The Royal Borough of Kensington and Chelsea intends to invest millions from its £2bn pension fund to support vulnerable residents.
The council plans to use £100m from its pension fund to help people experiencing homelessness, providing up to 250 homes for those without stable residency.
Through the initiative, the council aims to provide ‘stable, affordable and safe homes’ for those in need and limit overspending on temporary accommodation.
According to the local authority, the scheme will incur no cost to taxpayers, as the maintenance costs and pension fund contributions will be paid by the council using rental income.
Cllr Elizabeth Campbell, Leader of Kensington and Chelsea Council, emphasised the ‘devastating’ effect of London’s ‘growing homelessness emergency’, and highlighted the scheme’s potential to create ‘a brighter future for those who need it most.’
However, critics of the scheme have expressed concerns about ‘fiduciary responsibility’, reinforcing that the council’s investments must ‘meet prudent financial standards’.
