London Councils say homelessness cannot return to normal

London Councils has declared there can be ‘no return to business as usual’ on homelessness, as it revealed that boroughs are spending an extra £50 million on homelessness and rough sleeping due to coronavirus.

London Councils has highlighted the need for sustained support for tackling homelessness, as despite emergency investment from the government, boroughs are increasingly worried about the funding available for rough sleeper support.

Even before the pandemic struck, London was suffering the most severe homelessness crisis in the country – accounting for two-thirds of homelessness in England. The £50 million of extra spending in the wake of coronavirus comes on top of the approximately £1 billion annual cost of boroughs’ homelessness and rough sleeper provision.

London Councils has long warned that these costs are unsustainable – with around £200 million of the boroughs’ £919 million annual expenditure on homelessness and rough sleeping in 2017/18 not covered by government grants or councils’ housing income. This means boroughs resort to bridging the gap using their general funds, which could otherwise be invested in other council services.

To help sustain London’s homelessness services and embed the progress made on reducing rough sleeping, London Councils is calling for: an immediate boost to local authority funding to meet the higher support needs of rough sleepers and ensure onward accommodation can be secured; a twelve-month suspension of no recourse to public fund (NRPF) restrictions to unlock financial support for those who would otherwise return to rough sleeping; further welfare policy changes to support homeless Londoners and those at risk of homelessness, including lifting the benefit cap and abolishing the local housing allowance shared accommodation rate for single applicants under 35; and a phased lifting of lockdown measures to avoid a cliff edge when hotel accommodation used to shelter rough sleepers returns to commercial use.

Darren Rodwell, London Councils’ executive member for Housing & Planning, said: “There can be no return to business as usual on homelessness. We now have a golden opportunity to tackle homelessness and end rough sleeping altogether, if we sustain and build on the progress made in response to Covid-19.

“Chronic housing insecurity leaves people more vulnerable to illness, which is why the government was right to introduce a ban on evictions and to help fund emergency accommodation for rough sleepers. This has kept people safe, protected public health, and brought much-needed stability for many vulnerably housed Londoners. But we can’t afford to squander these achievements. Without ongoing measures to help keep people in their homes, we expect homelessness rates to shoot back up again – probably to even higher levels than before the crisis.

“Among our concerns are the continuing uncertainties over how the government expects support to be provided to rough sleepers who have no recourse to public funds. A summer spike in homelessness would be extremely damaging to London boroughs’ finances. Even before the crisis, boroughs weren’t receiving enough funding to meet their homelessness costs. We’re now spending an extra £50 million on homelessness and rough sleeping due to Covid-19 – an unsustainable situation has become even more unsustainable. London boroughs share the government’s ambitions on reducing homelessness – but action is needed now.”