Council leaders call for help with ‘homelessness crisis’

The calls follow on from a summit held last week (Tuesday, 31 October), co-hosted by Eastbourne Borough Council and the District Councils’ Network.

Following the summit, 119 council leaders — out of the 158 who attended — have signed a letter addressed to Jeremey Hunt, calling for additional funding for homelessness prevention and an increase to Local Housing Allowance payments.

Cllr Stephen Holt, leader of Eastbourne Borough Council, said: “119 council leaders, representing areas across England and of all political persuasions are asking Jeremy Hunt to recognise the gravity of this situation and provide local government with the appropriate funding and response.

“I have no doubt that the chancellor and the prime minister understand that this is threatening the very future of services that support and maintain hundreds of thousands of vulnerable residents. They cannot allow the safety net we provide to fail, they must act now.

“I am also grateful that so many authorities have responded so quickly and positively to our joint letter. We are all in agreement — this is a national crisis.”

Cllr Holt had called the summit against a backdrop of rising homelessness costs in Eastbourne and elsewhere.

In the last financial year (2022/23), the cost of temporary and emergency housing on homelessness claims in Eastbourne was £4.6m. The council reclaimed a £2m subsidy from the government to lighten this load.

This year, the council expects expenditure to increase to £5.8m, against a £2.2m subsidy, leaving a £3.6m hole in its budget.

Councils across East Sussex are experiencing similar issues, as are councils elsewhere.

In their letter, council leaders have asked Mr Hunt to take several concrete measures. These include: a meeting with the chancellor ahead of the autumn statement; an increase in Local Housing Allowance rates to a level which covers at least 30 per cent of local market rent; an additional £100m for Discretionary Housing Payments in 2023-24 and an additional £200m in 2024-25; and a £150m top-up to the Homelessness Prevention Grant for 2024-25.

Council leaders also called on Mr Hunt to: review the housing benefit subsidy rate cap homelessness placements; develop a policy to stimulate retention and supply in the privately rented sector; and give councils the long-term funding, flexibility and certainty needed to increase the supply of social housing.

Cllr Hannah Dalton, the District Councils’ Network housing spokesperson, said: “The fact that 119 council leaders from all political groups have joined up to demand urgent action from the chancellor on homelessness demonstrates that we are in an emergency situation, right across the country.

“Councils simply do not have the money to cope with this surge of demand for temporary accommodation and without action from Jeremy Hunt they will have no option but to cut services. Such is the scale of the problem that some councils will find themselves effectively bankrupt.

“Unless action is taken in the Autumn Statement, society’s most vulnerable people will continue to be hit hardest — the lifeline that their councils offer them will collapse and there will be a knock-on impact on other public services, including the NHS.

“Funding councils’ work properly will prevent homelessness now, easing the need for public services like the NHS to spend huge amounts dealing with the consequences of homelessness in future.”