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.

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.

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

Support the Big Issue

For over 30 years, the Big Issue has been committed to ending poverty in the UK. In 2024, our work is needed more than ever. Find out how you can support the Big Issue today.
Vendor martin Hawes

Recommended for you

View all
Tory renting reforms pass Commons with no date for no-fault eviction ban: 'It needs major surgery'
Jacob Young on Renters Reform Bill
RENTING

Tory renting reforms pass Commons with no date for no-fault eviction ban: 'It needs major surgery'

Nearly 100 MPs earned more than £10,000 as landlords in the last 12 months
Protesters with coloured placards
Renting

Nearly 100 MPs earned more than £10,000 as landlords in the last 12 months

Michael Gove U-turns on promise to ban no-fault evictions before general election
Michael Gove on no-fault evictions and the Renters Reform Bill
RENTING

Michael Gove U-turns on promise to ban no-fault evictions before general election

No-fault evictions will be scrapped 'in name only' under Tory renting reforms, campaigners warn
London Renters Union activists protest against Michael Gove and Renters Reform Bill
RENTING

No-fault evictions will be scrapped 'in name only' under Tory renting reforms, campaigners warn

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Cost of living payment 2024: Where to get help now the scheme is over
next dwp cost of living payment 2023
3.

Cost of living payment 2024: Where to get help now the scheme is over

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know