Homelessness Reduction Bill

Debate between Bob Blackman and Emma Reynolds

2nd reading: House of Commons
Friday 28th October 2016 Commons Chamber

[Bob Blackman]

For 40 years, we in this House have forced local authorities to ration the help they provide to the homeless.

I looked at what I could do. I served in local government for 24 years and saw at first hand the damage that homelessness can do to ordinary people who, through no fault of their own, lose their homes. I also sit on the Communities and Local Government Committee, which published its inquiry into homelessness in August. The Committee made particular efforts with ex-homeless people and young care leavers, which led directly to the report’s recommendations that form the basis of the Bill.

The aim of the Bill is to prevent people from becoming homeless in the first place and to prevent people from ever having to sleep rough. In case anyone misunderstands the extent of homelessness, rough sleeping has doubled since 2010. It was up 30% last year alone, with 3,569 people reported as sleeping rough on any one night in 2014. In London, 8,096 people slept rough at some point in 2015-16, an increase of 7% from 2014-15. Last year, 112,330 people in England made a homelessness application, a 26% rise since 2009-10, with 54,430 accepted as homeless and in need of assistance.

If we combat homelessness at an early stage before it becomes a crisis, we will save money in the long run for local authorities. Research commissioned by Crisis, based on in-depth interviews with 86 people who have experienced homelessness, estimates that £742,141 of public money was spent on 86 cases during a 90-day period of homelessness. Overall public spending would fall by £370 million if 40,000 people were prevented from experiencing one year of homelessness, based on an average reduction in public spending of £9,266 per person a year.

[Emma Reynolds (Wolverhampton North East) (Lab)]

I, too, congratulate the hon. Gentleman on introducing the Bill, which I fully support. On prevention, does he agree that in Wales the Labour Government have introduced measures very similar to those in the Bill? They are starting to work. Unlike in England, homelessness is dropping. He talks about a false economy. The Welsh Government have put money up front to deal with this issue, but I am sure they will save money in the long run.

[Bob Blackman]

I will come on to the situation in Wales in a moment.

The anticipated savings will include direct savings to local authority homelessness teams. Drawing on the lessons from Wales, which the hon. Lady rightly raises, academics commissioned by Crisis estimate that a projected 20% increase in prevention and relief activity could produce an additional cost of £43.9 million, but that that would be offset by a £46.8 million reduction in spending on people who are already homeless. That is partly due to reductions in the use of temporary accommodation and a greater focus on preventing homelessness. Over time, this should reduce the number of people who lose their home in the first place. This would require more intensive support through either a relief duty or an offer of settled accommodation under the main duty of homelessness.

The Bill should also make savings for other public bodies. Research by Crisis into the cost savings of prevention and relief duties in England suggest that in just six months we could save £2.88 million for the criminal justice system and £1.2 million to £3.8 million for the national health service, including over £500,000 of savings for accident and emergency departments alone. What we know is that people who are sleeping rough are far more likely to suffer from respiratory diseases and they have to use the NHS repeatedly.

In Wales, the Housing (Wales) Act 2014 came into force on 27 April 2015—a great day, the one after my birthday. The experience gained from that legislation has helped to inform measures in the Bill in certain areas. Wales has seen a 69% reduction in the number of households owed the main homelessness duty, with only 1,563 households owed the main homelessness duty in the first year of the new prevention and relief duties. In the first year, 7,128 households were provided with prevention assistance, of which 4,599, or 65%, had a successful outcome. Temporary accommodation has fallen by 16% in Wales since the introduction of the new duties, saving £697,980. In London, which accounts for 72% of temporary accommodation, even half that reduction would save some £37 million.