Benefit Reforms Hindering The Fight Against Homelessness

The government is “seriously undermining” the fight against homelessness with its benefits reforms, says the Chartered Institute of Housing.

This comes just a week after the National Audit Office condemned the government for not assessing the role of welfare reform was playing in the rise in homeless since austerity began in 2010. The NAO pointed out that there were 77,240 households in temporary accommodation in England in March 2017, an increase of 60% on March 2011.

Eighty-four per cent of 106 councils surveyed by the University of Sheffield and the Chartered Institute of Housing (CIH) agreed it was harder to work with housing associations to protect people from becoming homeless as a result of reforms, such as capping benefits. And, of the councils surveyed, 61% said restriction to welfare was the most common reason people were rejected for rehoming by a housing association, when threatened with homelessness. A total of 7 out of 10 housing associations surveyed also agreed.

In the joint report, the CIH and Sheffield University warn that welfare reform is “directly undermining” the Government’s own commitment to tackle homelessness. The Homeless Reduction Act is due to impose greater legal responsibilities on councils to prevent people becoming homeless from April next year.

Terrie Alafat, CIH chief executive, said: “Welfare policy is seriously undermining the work that councils and housing associations can do to reduce homelessness. The government has stated its commitment to tackle homelessness and the Homelessness Reduction Act, which comes into effect next year, represents significant progress. But it is also clear that welfare policy is directly undermining that effort.”

She added: “Policies like the lower benefit cap are leaving people with significant gaps between the help they get with housing costs and their rent. If the Government is serious about tackling our homelessness crisis it must urgently consider how it can create a policy framework which supports, and not undermines, what councils and housing associations can achieve together to tackle this huge problem.”

University of Sheffield Professor David Robinson, who worked on the research, said: “The introduction of the Homeless Reduction Act has been widely welcomed. The Act gives councils important new responsibilities and powers. However, councils cannot tackle homelessness on their own – they need help. Evidence that the vital role that housing associations traditionally play helping councils to reduce homelessness is being undermined is therefore deeply concerning.”

More than 70% of housing associations and councils said cuts to their funding had also hurt efforts to fight homelessness.

A Government spokesperson said: “Universal Credit claimants are moving into work faster than under the old system, and since the benefit cap was introduced, 34,000 households who previously had their benefits capped have moved into work.”

“We continue to spend around £90 billion a year supporting people who are out of work, disabled or a carer, bringing up a family or on a low income. We are also investing £550 million to 2020 to address the issue of homelessness and implement the most ambitious legislative reform in decades.”

Universal Credit Under Fire From CAB

The Citizens Advice Bureau has published a report analysing the implementation of Universal Credit and rising debt – and it identifies a number of problems that could cause or exacerbate debt problems.

In the report the CAB says that Universal Credit (UC) represents the biggest change to the welfare system undertaken since its inception by bringing together six different benefits into one single payment. By 2022, over 7 million families will be in receipt of this benefit – nearly 3 in 10 (28%) of all working-age households.

Although the report supports the aims of UC to simplify the benefits system, make transitions into work easier and make every hour of work pay, but cautions that to achieve these aims it is vital that it works well for all claimants. The report also shows that some aspects of UC could risk causing or exacerbating personal debt problems. With UC roll-out due to accelerate significantly from next month (October 2017), identifying and tackling the problems new claimants are facing now – before problems become widespread – is necessary to ensure UC meets its aims.

The evidence shows that the CAB’s UC clients are more likely to have debt problems than those on legacy benefits. A quarter (26%) of the people they helped with UC also needed help with debt, compared to 19% for legacy benefits, and are also struggling to pay off their debts. More than 2 in 5 (41%) debt clients on UC have no spare income to pay creditors, compared to a third (33%) on legacy benefits.

They identified the following issues that are causing or exacerbating UC clients’ debt problems:

  • The 6-week waiting period. Lack of funds during the initial 6 weeks whilst claimants are awaiting their first regular UC payment can cause or exacerbate debt problems, particularly rent arrears.
  • Poor administration. Processing delays within DWP, and incorrect information provided to claimants, is leading to delays in submitting and paying UC claims.
  • Difficulty budgeting. Some claimants find it difficult to adjust to monthly UC payments, particularly those in debt, or with fluctuating incomes.
  • Difficulty opening a suitable bank account to receive UC payments. Claimants are required to have a suitable bank account to receive UC. Some are finding it difficult to open one, leading to delays in receiving their benefits.
  • Deductions from UC for benefit overpayments and other debts. UC claimants are experiencing financial difficulties due to the amount which can be deducted for other debts or overpayments, which is considerably higher than under legacy benefits.

This, alongside recent evidence presented in the CAB report ‘Delivering Universal Credit’, demonstrates the need to improve the way UC is delivered and reduce the risk of UC causing or exacerbating debt problems. To do this, the CAB say the government should pause the roll-out and fix the problems with Universal Credit so that:

  1. No one is left waiting longer than 6 weeks for an income
  2. Those who need it get a payment within 2 weeks that they do not need to pay back
  3. People have access to a minimum standard of support to help them adapt to Universal Credit, which is published. This should, at a minimum, include:
    1. Ensuring all UC claimants are made aware of, and can access budgeting support which is appropriate to their needs and;
    2. Making funding available for free impartial debt advice to meet existing increases in demand as a result of Universal Credit.

In addition, the Financial Conduct Authority (FCA) should:

  • Amend its rules on assessing creditworthiness to require firms to develop policies on how they factor in income from Universal Credit in affordability assessments
  • Actively monitor the roll out of Universal Credit to see if it has an adverse impact on unauthorised lending, and consumer credit firms’ forbearance and debt collection practices
  • Develop guidance on how banks should keep their commitments under new legislation to provide basic bank accounts to unbanked UC claimants.

Acting on these recommendations, as well as those set out in ‘Delivering Universal Credit’ report, will help reduce the risk of UC claimants falling into debt or of UC exacerbating their existing debt problems.

You can download the report ‘Universal Credit and Debt: Evidence from Citizens Advice about how Universal Credit affects personal debt problems’ here:

https://www.citizensadvice.org.uk/Global/CitizensAdvice/welfare%20publications/Universal%20Credit%20and%20Debt%20-%20final.pdf

Everton In The Community Fundraising Challenge To Help The Homeless

The Goodison Sleepout fundraiser returns for its second year on Friday November the 10th with one of Everton In The Community’s toughest challenges.

The challenge gives participants the chance to raise money for a pioneering charity while spending the night in one of the world’s most famous football stadiums. The overnight fundraiser follows on from the success of last season’s inaugural event that saw Everton’s Under-23s squad launch the Home is Where the Heart Is (HIWTHI) campaign.

This year’s attendees will once again be able to join up with Everton U-23s manager David Unsworth and members of his squad, as they grab their sleeping bags and brave the elements to experience the challenges homeless people face.

Commenting on the announcement, David Unsworth said: “I’m delighted to see The Goodison Sleepout return. This was one of the toughest things we had to do last season as a squad, but we really enjoyed it, despite the freezing temperatures, so it’s great to know that there is so much interest for it to return.”

“This year’s funds will go towards the charity’s wider initiatives, which includes the setting up of a supported living facility that we raised over £230,000 for, as part of the Home is Where the Heart is campaign. Everton in the Community is an amazing charity with over 40 programmes covering education, health and wellbeing, youth engagement, employment and training and social isolation.”

“It is known as a charity that not only changes lives but saves lives. The more people we can get to sign up, the bigger difference we can make in our local area.”

Participants are asked to raise a minimum of £150, including a £10 registration fee, with all funds contributing towards life-changing projects run by EitC throughout Merseyside and beyond.

To sign up, call the Fundraising Team on 0151 530 5260 or visit www.evertonfc.com/community

Rise In Homelessness “Driven By Welfare Reforms”

According to the National Audit Office (NAO), government welfare reforms have led to an increase in rough sleeping in England of 134%, with homelessness overall costing the public sector more than £1bn a year.

The number of families in temporary accommodations across England has increased by 60% to 77,240 since March 2011, the public spending watchdog said in its latest report. Among them were 120,540 children, an increase of 73%. The NAO also counted 4,134 rough sleepers on a single night in autumn 2016, an increase of 134% since autumn 2010. Of the over £1bn spent on homelessness services nearly £850m was spent on temporary accommodation and £638m of that was funded by housing benefit. Spending on overall housing services has fallen by 21% in real terms since 2010.

Amyas Morse, head of the NAO, said: “Homelessness in all its forms has significantly increased in recent years, driven by several factors.” The report attributed the increase in homelessness to the ending of the private sector tenancies and the decrease in affordability of properties in the private rented sector “of which welfare reforms such as the capping of Local Housing Allowance are an element.”

“Government has not evaluated the impact of its reforms on this issue, and there remain gaps in its approach,” Morse said. “It is difficult to understand why the Department persisted with its light touch approach in the face of such a visibly growing problem. Its recent performance in reducing homelessness therefore cannot be considered value for money”.

These factors have led to an increase of number of households accepted as homeless by local authorities – from 11% to 32% between 2009 and 2017. The proportion in London increased from 10% to 39% during the same period.

The NAO added that, although the Department for Communities and Local Government is responsible for tackling homelessness, it did not engage with local authorities to monitor the progress of their homelessness strategy.

Polly Neate, Chief Executive of housing and homelessness charity Shelter, said the report reveals “the tragedy of rising and persistent homelessness in England”.

“The NAO has found what Shelter sees every day, that for many families our housing market is a daily nightmare of rising costs and falling benefits which is leading to nothing less than a national crisis,” she said. “That’s why we are calling on the government to act now, in this year’s budget, to end the freeze on housing benefit and to commit to building decent homes at affordable rents. Without this action this is a crisis which will only get worse.”

The government said it was working to resolve the “complex issue” of homelessness and it was implementing the Homelessness Reduction Act.

“Our welfare reforms restore fairness to the system with a strong safety net in place to support the most vulnerable, including £24bn through the housing benefit,” a government spokesperson told the BBC.

“There’s more to do to make sure people always have a roof over their head and ministers will set out further plans shortly, including delivering on our commitment to eliminate rough sleeping entirely.”

Manchester Mayor Demands An End To Homelessness

The Mayor of Greater Manchester, Andy Burnham, has issued an ultimatum to all public sector bosses to tackle the escalating homelessness problem.

Mr. Burnham is demanding all organisations, including councils, GP leaders, the police and housing providers, take urgent and immediate action and come up over the next fortnight with plans to tackle the problem. He has grown frustrated in recent months at the rising numbers of rough sleepers on the streets and believes more short-term measures could be taken to reverse the trend, alongside longer-term plans to build new shelters and reform the housing sector. He is particularly keen to see vacant public buildings used as shelters – particularly as winter sets in – and to ensure all homeless people have access to GP services.

According to a report in the Manchester Evening News, the region’s public sector chiefs were already due to meet on October 6 to discuss ‘life readiness’ among teenagers. However, the mayor says the topic of that meeting has now been changed to homelessness.

In a letter to them, he wrote: “As mayor I have asked individuals, businesses and the voluntary sector to do more, and they have, now it is time for the public sector to increase the urgency with which it responds to homelessness and rough-sleeping. I want you to think about what your organisation can do individually and what you can do collectively, working together with other public sector partners.”

“Our discussion will focus on the immediate action we can take across all public bodies and voluntary sector organisations, as well as receiving an update on the work done so far and future action plan. I am requesting as chair of the board that each body brings ideas of actions that can be taken immediately and in planning for a longer term solution.”

He lists a number of specific suggestions, including asking the NHS to ensure GPs provide treatment to homeless people whenever they need it, looking for vacant properties owned by housing providers or other parts of the public sector that could be opened up, and looking at how all authorities can work together to ensure nobody is on the street during severe weather.

The letter has been sent to chief executives of all 10 councils, as well as the region’s chief health officer, Greater Manchester housing providers, the county fire officer, clinical commissioning leaders, mental health providers, the Department of Work and Pensions, and the chief constable.

He told the Manchester Evening News that while the voluntary sector, members of the public and business had been active in helping to solve the problem, the public sector could do more. “This problem is escalating before our eyes and now needs to be gripped much more fundamentally by the system,” he added.

Mr Burnham was elected in May on a promise to end rough sleeping on Greater Manchester’s streets by 2020. Official estimates are only released once a year, with the last numbers estimating the numbers at 78 – but charities say numbers are routinely three or even four times that estimate and one told the M.E.N. around 20 new homeless people are currently appearing in the city centre every week. The number of people living in temporary accommodation also shot up by a third between June and December, according to research by Shelter.

Benefits changes – particularly recent cuts to housing benefit for people aged 18 to 21 – have been identified as a particular factor in the rising numbers. A report by the National Audit Office (see above) earlier this week is understood to have heightened concerns within the mayor’s office. It found the government had failed to understand the link between welfare cuts and homelessness, adding that it was ‘difficult to understand’ its ‘light touch approach’ to the crisis.

Funding Cuts To Supported Housing On The Way

It is believed that if the freeze on Local Housing Allowance (LHA) rates continues into 2020/21 and there is no top-up funding available, 91% of The Salvation Army’s homes would cost more to run than there is funding to cover them.

Analysis by Frontier Economics found that supported housing residents in its units would require an average top-up of around £78 per person per week to allow the charity to continue running its service at the current level. However this varies across regions: £128 per week is required in the North West, while London residents would require little or no top-up.

Consequently, The Salvation Army, along with others in the sector, is calling on the government to delay applying LHA rates to supported housing until April 2022 to allow time for a new solution to be found that “accurately reflects the true costs of safe and secure supported housing”. This follows a National Housing Federation survey published last week which found that 85% of supported housing had been pulled by housing providers because of uncertainty over the LHA cap. 

The charity conceded that the government plans to include top-up funding in its new policy but has concerns about it being administered by councils on a discretionary basis. The charity said supported housing does not operate in isolation and it is concerned about the reform’s knock-on impact on other services such as the NHS.

Mitch Menagh, territorial director of homelessness services at The Salvation Army, said: “Sadly we cannot operate our service on the basis of discretionary ‘top-up’ funding, which offers our residents very little financial security. This change in funding would mean that we cannot effectively budget for the future and it also means that our service users would not be guaranteed the support they need for what are often extremely complex needs.”

Housing consultant Joe Halewood said: “The LHA Maxima Cap policy is to begin its one year lead-in time in April 2018, ahead of its national implementation in April 2019. The policy is the most significant policy change to the funding of supported housing / living since the THBS system of 2000 was the lead-in for Supporting People (SP) in 2003. The Housing Benefit that providers now receive is cut and capped to the maximum local housing allowance or LHA equivalent for private sector general needs housing.”

“All supported housing / living providers need to prepare for the April 2019 start date as a matter of urgency. Future-proofing existing services may require significant remodelling and the urgency is heightened with the 1 year only lead-in time. Current business plans not considering the LHA Maxima Cap policy have to be started all over again.”

Liverpool Barber Gives Free Haircuts To The Homeless

Every Sunday, you’ll find Jack Jenkins standing outside the Bombed-Out Church, at the top of Bold Street, giving free haircuts to the homeless. But what many won’t know is that the self-taught barber was himself homeless for a while when he was very young.

Jack was left to fend for himself at the tender age of 15, following the break-up of his parent’s marriage. Jack, from Childwall, told the Liverpool Echo: “My mum and dad split up when I was young and while they’ve both tried to do the best by me, it affects children in different ways and I took the negatives from it. I got in with the wrong people and I was easily influenced so I started skipping school.”

“My mum as a single parent couldn’t cope anymore so she kicked me out. I was 15 at the time and I didn’t have anywhere to go so I was just out and about with my bags, couch-hopping and walking the streets at 4am for something to do. After a few weeks my nan and granddad took me in, they’re like saviours to me. They got me into college and into a job.”

Two years later, Jack moved into his own flat and began his journey to becoming a barber – he opened his own salon by the age of 23. Jack said: “I quickly fell in love with making people look and feel good about themselves and I’ve been working six days a week for the past six years, building and building to where I want to be.”

“The main reason I started helping the homeless was because one day I walked past a man lying on a piece of cardboard in the street bleeding out of his eyes and ears. And I thought to myself why are you looking down at these people when you can help them?” He added: “You’ve got to be really patient with the homeless and understand that they may not have had the right upbringing or lived the right life.”

Jack, who now works at Crew barbers on Smithdown Road, is leaving Liverpool in January to go travelling as a barber in Melbourne. On leaving he hopes that people in Liverpool will continue the work he has started.

Jack works alongside the charity Helping Hands who distribute bowls of Scouse and bread to the homeless outside the Bombed-Out Church every Sunday from 6pm until 8.30pm. If you would like to help Jack or to donate any toiletries, clothing or sealed food items then follow his Instragram @jackjenkinshair or ring him on 07405743580.

Refugees Ending Up Homeless

New research, published by the Refugee Council and commissioned by The Guardian, reveals high levels of homelessness and destitution among refugees shortly after they have been granted their refugee status.

Refugees who arrive in the UK through formal resettlement schemes, such as the Syrian Vulnerable Persons Resettlement Scheme, have accommodation secured before they arrive and receive 12 months tailored support to help them settle and integrate.

However, refugees who arrive in the UK independent of such a scheme have their support withdrawn within 28 days of being granted refugee status, leaving them at real risk of homelessness and destitution. As government support is quickly cut off after somebody receives refugee status, they can find themselves homeless, forced to rely charities, friend, families and food banks to meet their basic needs.

The Refugee Council conducted a survey of 54 refugees who had been granted status since 2016, and found that:

  • Of the 54 respondents to the survey more than half, 31, slept rough or in a hostel or night shelter in the period after they were granted refugee status.
  • None of the people who were living in asylum support accommodation had managed to find secure accommodation by the time they were evicted at the end of the move on period.
  • Most of these newly recognised refugees were forced to rely on charities, friends and family, and foodbanks once their asylum support payments were terminated as Home Office support dropped away and employment had not been secured. 30 people reported feeling uncomfortable about relying on others for food, money or accommodation, and 12 said they felt unsafe.
  • Many respondents reported negative feelings after being granted refugee status, and one reported multiple suicide attempts.
  • Participants reported high levels of loneliness and isolation.

The Refugee Council’s Director of Advocacy said: “The findings of this survey add to a growing body of evidence that shows the many newly recognised refugees become homeless and destitute at the point when our government has committed to protect them.”

“Instead of this being a time of relief and happiness for refugees, quite often the opposite is true as they find themselves without anywhere to live and relying on the charity of others to survive. The Government must not turn its back on the very people it has decided need its protection and must urgently review the current system to ensure that refugees are not left unsupported.”

You can download the full report ‘Refugees without refuge: Findings from a survey of newly recognised refugees’ here: http://reliefweb.int/sites/reliefweb.int/files/resources/Refugees_without_refuge_Sept_2017.pdf

How Will The Homeless Get Universal Credit?

With the roll out of Universal Credit Full Service set to accelerate in October, Homeless Link looked at the options that are available to ensure people can receive their Universal Credit payment.

Universal Credit Full Service is the new system for applying, managing and receiving welfare benefits. New welfare claimants in Universal Credit Full Service areas receive one Universal Credit payment, which replaces Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Child Tax Credits and Working Tax Credits and Income Support.

People currently on legacy benefits will be transferred to Universal Credit if they are in a Universal Credit Full Service area and have a relevant change in circumstances. Although only around 100 Job Centre Plus currently have full-service, this will increase by around 50 Job Centre Plus a month from October, with national roll-out expected to be completed in September 2018. Any remaining legacy claimants will be moved onto Universal Credit from July 2019 to March 2022.

Universal Credit has been designed so that the majority of claimants will receive payment directly into a bank, building society or credit union account.

But many people will find it difficult to open a bank account if they are rough sleeping, sofa surfing, or have no fixed abode. This is because of the problems in obtaining an adequate proof of address that a bank will accept. It can also be equally hard for a person living in a hostel and/or supported housing to open an account, due to a lack of supporting documentation.

However, the Government website says that Universal Credit can be paid in a different way if there are problems opening a bank account and that Job Centre Plus Work Coaches should help to explain the process of receiving payment. Homeless Link has been in discussions with DWP who confirmed that recent internal communications have been issued to Work Coaches to remind them that where a claimant is unable to open or manage a transactional account, DWP can pay Universal Credit into a Post Office card account.

Homeless Link and others have helped shape the ‘Change Account’ that has many of the benefits of a bank account, such as a debit card, dedicated sort code and account number, direct debits and budgeting wallets. There is no credit check associated with opening a Change Account, so individuals with a poor credit history or anyone who has been made bankrupt could still qualify. Details of the benefits and associated costs of the Change Account can be found here: https://www.thechangeaccount.com/.

If you have any problems or successes in opening accounts, please contact Chris Brill at chris.brill@homelesslink.org.uk  so that they can share this learning with our members and advise DWP when and where things are not working. For more on this issue go to www.homelesslink.org.uk

Toff Who Burned A £20 Note To Taunt A Homeless Man Apologises To His College – But Not To His Victim

A Cambridge University student who sparked fury for burning a £20 note in front of a homeless man will not be expelled, it has been revealed.

The university came under pressure to expel student Ronald Coyne after a video of him taunting the homeless man while dressed in a bow tie and coat-tails went viral. But he has kept his place at Pembroke College after writing a public apology saying he had been threatened with chemical attacks after he ‘forgot what it really meant to study at Cambridge’. He was promptly expelled from the Cambridge University Conservative Association after his disgraceful behaviour in the early hours of February 2 caused a national furore.

Rough sleeper Ryan Davies said he was taunted by Mr Coyne after he asked for spare change. Mr Davies said he “couldn’t believe his luck” when the student pulled out a £20 note. But then he was forced to watch as Mr Coyne “lit it, burnt it” and allegedly said: “How’s that for change, I’ve changed it into flames.”

But bosses at the historic university have repeatedly refused to confirm or deny if disciplinary action would be taken against the first-year student. Now Mr Coyne’s college has shared his letter of apology to its students in a bid to ‘generate support for Ronald as he prepares to return to College.’

In the letter he says: “My experience of Cambridge was of a place which is positive, accepting, and friendly. Yet on that evening, I forgot what it really meant to study at Cambridge. I misrepresented what it meant to be a student here. When the media commentary flared up, strangers sent piles of abusive mail to my family home threatening me with violence, and chemical attacks.I have addressed the root causes of my behaviour by attending awareness classes, relating to both alcohol and social inclusion.”

“Until now, there had been an ongoing disciplinary process on a university and college level which had meant I couldn’t respond publicly. Now that these processes have concluded, I am setting out to try to remedy some of the hurt caused by my actions. “My actions were wrong and without thought or consideration.”

“I abused my privilege as a student at such a great university, and behaved in a way which is totally contrary to the values of the university and of its students.”

His mother Sandra McLaughlin previously said she could not understand her son’s behaviour. She said: “I don’t recognise that behaviour in my son. I don’t really know why he’s done something so thoughtless and cruel. It’s completely out of character. He did two years of volunteering at Stockbridge shelter homeless shop in Edinburgh when he was still at school. It’s very surprising. We’re just a normal family. We’re not toffs, he’s not a toff.”

Now other homeless people on the streets of Cambridge have shared their thoughts on Ronald Coyne’s actions – and his apology. One rough sleeper, Jason Crow, 43, was a musician but has now been homeless for two years, said: “He [Ronald] has only apologised because he’s realised it’s against social convention and he’s embarrassed himself a little bit with his peers. He wants to redress that balance rather than the balance of being genuinely sorry about what he did to a homeless guy.”

“It’s probably more about saving a bit of face with his peers than anyone else. Maybe he should have been educated – he’s at college but he’s clearly not learning the right stuff. You need to learn about life as much about how to navigate through that life. You learn a lot about being human when you’re homeless.”

Asked about how others act towards him on the streets, Jason said: “People regularly make a point of walking past counting money, or they stop in front of you and rattle the money in their pocket as if to find a coin, but then they walk away. I just don’t understand it, we’re broken people. All I do is spend most of my life trying to educate people – if we were all a little bit more compassionate the world would be a better place. We have passion and humanity, that’s what makes us human.”