Over the past year, the ongoing cost of living crisis has been something that people across the country have had to deal with. For those already facing homelessness it’s been a particularly worrying time.
Across the homelessness sector, we’ve been waiting for an acceptable response to the crisis from the government. On 17th November, the Autumn Statement was announced, outlining the government’s priorities for growth, stability and support for the public services across the country.
Here we’re taking a look at how the Autumn Statement measured up to expectations.
High hopes for sustained change
The hope was that the Autumn Statement would be an opportunity for the government to offer the essential support that people really need this coming winter. To see this reflected in funding and benefits.
Instead, we got a real mix of results. There’s no doubt that there are positives, but the “unprecedented steps” taken by the government don’t really go far enough.
In the Autumn Statement, it’s evident that Jeremy Hunt has pushed back the most important and tricky decisions until after the next election. This is despite very real concerns that higher energy bills and the worst inflation in four decades will cause a protracted recession, a jump in unemployment of 500,000 and a lost decade for living standards.
Support for the most vulnerable
In response to the rising cost of living, households on means-tested benefits can receive payments of up to £900 to cover the cost of bills. However, with the energy price cap set to rise even further by next Spring, it’s likely these payments won’t stretch very far.
The government has also doubled funding to extend the Household Support Fund over the next two years. It now sits at £1 billion. Although this is vital for local councils to provide struggling households with the basic essentials, it isn’t enough to cover the inevitable rising rent payments.
From April next year, the government will increase Universal Credit to match this September’s 10.1% rate of inflation. This course of action is usual for this time of year, but there was a general feeling of uncertainty about whether the government will continue to match the rate of inflation, particularly given that the latest rise is already out of date. In October this year, inflation had already risen to 11.1%.
Private renters on housing benefits overlooked
The absence of support for private renters on housing benefits is very apparent. The Local Housing Allowance will stay frozen at levels based on 2018-2019 rents until March 2024. The consequences of this will be detrimental, as rent payments are continuously rising at record-breaking rates.
Between March and April 2022, the median monthly rent cost was £705 in England, the highest ever recorded. The government’s lack of commitment to private renters is only set to increase the number of people who are facing homelessness.
Even now, the situation is incredibly worrying. In 2021-22, the number of households with children who were either threatened with homelessness or already homeless had increased by almost a quarter (23.3%) compared to 2020-21. Increased rent, with no rise to housing benefits will push more and more families into homelessness this winter.
The government must take more action, and more responsibility.
Supported accommodation exempt from 7% social housing rent cap
There is one big positive for those in supported housing. And to some extent, the government has finally recognised some of the vital needs of those facing homlessness. The decision to exempt supported accommodation from the 7% social housing rent cap is significant, and will go some way to support those tenants who find themselves on the brink of homelessness.
Although the Autumn Statement offers people and the homelessness sector some hope for the winter, here at Simon on the Streets, we’re clear that it has NOT done enough.
The impact of freezing the Local Housing Allowance, the lack of investment in social housing, the cost of living crisis - all of these are set to push even more people to the very brink.
That’s why we’re very much still out there. Simon on the Streets remains dedicated to providing much-needed support to those facing homelessness, and we need your support to continue doing so. To explore the many different ways that you can help to make a difference, simply get in touch.