MP, Labour’s Shadow Housing
Minister, responding to the Government’s announcement of funding
the costs of the Homelessness Reduction Bill, said:
“Labour has said from the start that while new legislation to
tackle the scandal of high and rising homelessness is welcome, it
must be fully funded. Today’s statement offers funding which runs
out after two years and raises concerns that Ministers will not
honour the promise made in the House of Commons that ‘the
Government will fund the additional costs of the Bill’.
“The sum of £35 million offered for the next financial year, when
divided between councils is likely to be less than the estimates
made by authorities themselves.
“Particularly worrying is that the funding falls to zero within
two years. There is no evidence provided by the Government that
savings will offset costs by this time. It is essential that
Ministers both provide the calculations on which this claim is
based and that they agree to a full review of costs after two
years, as the Local Government Association has requested.
“Finally, the problem that has beset the Bill from the start is
no nearer resolution. Legislation alone will not cure the
epidemic of homelessness that has seen rough sleeping double
since 2010. So the Government must also bring forward plans to
building more genuinely affordable homes, and dedicate at least
4,000 of these to avert rough sleeping as Labour has advocated.
“Labour will continue to work to make this cross-party Bill a
success, but it is up to the Government to demonstrate that their
commitment to fund the full costs of this legislation is more
than just hot air.”
Notes
1. The Written Statement announcing the funding is available
here:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-01-17/HCWS418/
2. The Minister ’s commitment to fund the full
costs of the new legislation was made at the Second Reading of
the Homelessness Reduction Bill, 28th October 2016
https://goo.gl/M9awd8
3. Independent bodies and local authorities have made much higher
estimates of the costs of the new legislation. The Association of
Housing Advice Services, a non-profit organisation, estimates
London’s 32 boroughs will face a combined bill of £161m to
implement the new duties:
http://www.insidehousing.co.uk/new-homelessness-duties-could-cost-london-councils-millions/7018132.article
