What impact will welfare cuts have on homelessness?

Latest

Share this article

In March, the chancellor announced significant cuts to disability benefits in the UK. The news has been met with criticism by those receiving disability benefits and by many charities and organisations that fear these cuts will create even greater demand for their already stretched services. 

We can’t help but be concerned about the potential these cuts have to push even more families into poverty. It’s predicted that as many as three million households will lose income as a result - causing as many as a quarter of a million people (including 50,000 children) to experience poverty by 2029-30. 

‘Catastrophic for disabled people’

There has been an outcry from homelessness, disability and anti-poverty charities since the cuts were announced. Some have gone as far as to call it a ‘violation of human rights’. Disability charity Scope described the cuts as a ‘catastrophe for disabled people’s living standards and independence ’.

Anti-poverty charity Z2K’s chief executive commented, ‘These shocking and dangerous proposals would have a devastating effect on families who are already living in poverty. The plans make a mockery of the government’s commitments to tackle child poverty and the widespread reliance on food banks.’  

A contradiction?

Since coming into government last summer, Labour have stated they’ll focus on Britain's housing crisis by ‘getting Britain building’. They didn’t specifically say anything about tackling homelessness in the same way Rishi Sunak’s government did. Still, their focus on house building is certainly a clear statement of their intentions.

However, the CHI Impact Seminar in 2022 concluded that over 90% of people experiencing homelessness rely on benefits to live their day-to-day lives. The suggested cuts include the health element of Universal Credit and Personal Independence Payments. Losing these payments could leave thousands of people unable to pay their rent or mortgages and, therefore, plunge them into homelessness. So, regardless of whether Keir Starmer’s house-building schemes come off, many people will be unable to afford them. 

It raises the question of whether these welfare cuts are at direct odds with the government’s hopes for more people being able to access appropriate housing in the next few years.

The worry for charities 

Funding, fundraising, and even volunteering have fallen in recent years. Between 2022 and 2023, government funding decreased by a third. The cost of living crisis has put increased pressure on individual donors, meaning they either give less or not at all. 

And yet, over 85% of charities report increased demand for their services, particularly organisations working in poverty relief, human rights and diversity. We know many others in our sector are concerned that they can’t keep their doors open and the lights on in the current climate. This could leave many people they support with potentially life-saving services pulled out from under their feet. 

The consequences of which could be devastating. 

At Simon on the Streets, we’ll continue to work towards our mission: giving hope to those without a voice. All we can do now is hope that those who have the power listen to our concerns and take appropriate action to protect some of the most vulnerable people in our society.

Share this article