William Eichler 18 January 2017

LGA: £48m may not be enough to fund extra homelessness provision

Local authorities welcome an extra £48m of funding to help expand homelessness provision, but warn this may not be enough in the long-term.

Local government minister Marcus Jones yesterday confirmed the new cash would be available to help councils meet the costs of the Homelessness Reduction Private Members’ Bill.

If the Bill passes, councils will be required to help all eligible people for 56 days before they are threatened with homelessness.

Those who are already homeless will get support for a further 56 days to help them secure accommodation.

Communities secretary Sajid Javid promised the Bill, which was introduced last year by Conservative MP Bob Blackman, would make ‘real changes’ to the way councils tackle homelessness.

‘I’m committed to preventing homelessness and this new £48m backing for Bob Blackman’s Homelessness Reduction Bill will allow councils to make real changes in the way they help vulnerable people,’ he said.

Responding to the funding announcement, Mr Blackman said: ‘This funding package is a strong demonstration that the government is serious about helping people at risk of homelessness and I very much welcome this commitment.

‘Should my bill succeed, there will inevitably a transitional period as councils begin to manage their new duties and I believe this support will give them the best possible head start to improve outcomes long term.’

The Local Government Association (LGA) welcomed the news of more funding but said the £48m figure is based on ‘assumptions that are difficult to predict.’

‘Councils have concerns that initial costings will inevitably be based on assumptions that are difficult to predict,’ warned LGA chairman Lord Porter.

‘For example, it is impossible to know how many people will come forward to access the new duties, what the impact of the Bill will be on different groups over time, and therefore the funding councils need to deliver duties that reduce homelessness. 

‘We ask that the Government commit to reviewing the Bill’s impact two years after implementation, to assess its actual impact and to ensure that councils are being fully equipped and funded to deliver the Bill’s ambitions.’

London Councils, the think tank and lobbying group for the capital’s 33 councils, shared the LGA’s concerns.

‘While we welcome CLG's commitment to fully fund the Homelessness Reduction Bill, London Councils is concerned that the costings contained within the bill are based on estimates and therefore unlikely to be fully funded,’ a spokesperson said.

‘The particular pressures in London, the potential impact of welfare reform and escalating  homelessness are not addressed or acknowledged in these costings.

‘We call on government to commit to reviewing the costs at the end of the first year to ensure the bill is fully funded.’

For more on homelessness visit The MJ (£) to read Stephen Graham's feature, 50 years on from Cathy Come Home.

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