Advertising helps fund Big Issue’s mission to end poverty
Housing

Salvation Army warns thousands of hostel bed spaces could be lost

Supported accommodation in jeopardy because of government changes to housing benefit, charity claims

The Salvation Army has warned that government changes to the housing benefit system could force it to close hostels for homeless people.

From 2019, the government plans to fund the nation’s supported accommodation system through housing benefit (or Universal Credit) only up to capped local rates.

And the charity now says the reduced sums will mean a desperate struggle ahead to keep hostels open, leaving thousands of homeless people “at risk” of having to sleep on the streets.

A new report commissioned by the charity revealed 84% of residents at The Salvation Army’s “Lifehouse” hostels would be unable to pay for bed spaces under the benefit cap, rising to 91% of residents by 2020/21.

The new system would place the financial viability of the vast majority of our supported housing services at immediate risk

Mitch Menagh, territorial director of The Salvation Army’s Homelessness Services Unit, conceded the outlook appeared grim.

“We found evidence that the new system would place the financial viability of the vast majority of our supported housing services at immediate risk, jeopardising the homes of thousands of vulnerable people,” he said.

Advertising helps fund Big Issue’s mission to end poverty
Advertising helps fund Big Issue’s mission to end poverty

The report by Frontier Economics estimated that the planned reforms would leave, on average, homeless residents in Lifehouses needing an average “top up” of around £78 per week.

Additional funding from local authorities has been difficult to come by because of ongoing budget cuts.

The Salvation Army has argued that the government changes are not appropriate for supported accommodation. Although new housing benefit caps vary from region to region, its services do not vary significantly based on where they are in the UK.

Continue reading for free

Registration is free and takes less than 30 seconds.

Our supporters make Big Issue’s work possible. Join us to see the impact we’re having together and discover more ways to help people facing poverty access income, opportunity and support.

So in Grimsby, for instance, the Local Housing Allowance rate is £75 per week. But the cost to the Salvation Army of providing someone with accommodation costs there is £173 per week.

The charity is urging ministers to delay implementation of a new system until 2022, and use the time to help the sector develop an alternative funding mechanism.

“As part of any new funding system, we would very much like to see the Government maintain this level of stability for our residents, who will have often experienced chaotic lives prior to their stays with us,” said Menagh.

Photo: William Murphy, licensed under Creative Commons

Advertising helps fund Big Issue’s mission to end poverty

Do you know how Big Issue 'really' works?

Watch this simple explanation.

Recommended for you

View all
Are Andy Burnham’s affordable homes plans a 'council housing revolution' or a 'massive backtrack'?
Prime Minister Andy Burnham and Angela Rayner, Secretary of State for Housing, Communities and Local Government visit Alex's Place.
Housing

Are Andy Burnham’s affordable homes plans a 'council housing revolution' or a 'massive backtrack'?

Can transforming closed pubs into homes offer a solution to the housing crisis? 
Keely Dalfen (second from right) with some of the team at The Brick
Housing

Can transforming closed pubs into homes offer a solution to the housing crisis? 

Big Issue vendors react to Andy Burnham’s rough sleeping pledge: ‘It would mean the world’
Vendor Bob Sheppard wears a Big Issue bucket hat from our summer support kit and holds our Oasis issue outside Big Issue's Bristol offices.
Housing

Big Issue vendors react to Andy Burnham’s rough sleeping pledge: ‘It would mean the world’

In pictures: What it's like to sleep in your car while homeless in a heatwave
Sam Singleton's car parked next to a tent in the shade
Sam Singleton

In pictures: What it's like to sleep in your car while homeless in a heatwave