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IMPACT OF THE COMPREHENSIVE SPENDING REVIEW ON HOMELESSNESS SERVICES Neelam SunderWest Midlands Regional ManagerHomeless Link

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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

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2. Our Main Asks1. Maintain investment in Supporting People at current levels

2. Continue to use element of National Affordable Housing Programme to develop new supported housing and remodel existing housing stock

3. Continue Places for Change capital & revenue investment

4. Maintain the level of the Homelessness Grant

5. Recognise adults facing multiple needs as a key issue

6. 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

7. Flag individuals receiving housing-related support as vulnerable, requiring support within welfare reform & Work Programme

8. Ensure housing, health & social care work together to maximise value of public investment and jointly invest in prevention & early intervention

9. Maintain public health funding in real terms

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3. Overview of key changes

Supporting People cut by 12% over four yearsHomelessness Grant kept at same levelNew, smaller Places of Change programmeLocal authority overall funding from CLG cut by 28% over four yearsVirtually all funds to be de-ringfenced

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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 rate shifted 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)

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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)

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

CLOUDS SILVER LININGS

- decrease in supply & increase in demand: serious hits to service income, while likely increase in homelessness

-Locally, possible opportunities to deliver LA services -criminal justice payment-by-results

trailblazers-ring-fenced public health grants to

LAs -Move to GP-led health commissioning

-- Work Programme -Some services WILL

close. Others may consolidate with larger providers or change service models

-Nationally, £100m central transition fund (closing date 21st Jan 2011)

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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

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7. What is Homeless Link going to do?

Cuts monitoring project – gathering intelligence on potential impacts nowSupport local services to campaignCampaign nationally to demonstrate gap between national intentions (or rhetoric) and local execution of cuts – continued work with Cross-Ministerial Group on HomelessnessLobby for changes to housing benefit proposals

Fight for homeless people, fight for services

WWW.HOMELESS.ORG.UK Photos: Robert DavidsonCharity no: 1089173

Company no: 4313816

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

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Neelam Sunder

West Midlands Regional Manager

neelam.sunder@homelesslink.org.uk 07887 848562

Photos: Robert DavidsonCharity no: 1089173

Company no: 4313816