British government announces £1bn fund to address homelessness crisis

British government announces £1bn fund to address homelessness crisis
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London (Parliament Politics Magazine) –  Angela Rayner confirmed the UK government will provide £1bn to councils next year to tackle growing homelessness, focusing on preventing evictions and offering support for vulnerable families. 

Ms Rayner called the funding the “largest-ever” allocation and a “turning point” and this grant will help councils act early to prevent homelessness, with mediation efforts to avoid evictions.

The Ministry of Housing, Communities and Local Government (MHCLG) stated that the funding will also be used to support services that prioritise focus on providing permanent social housing for those individuals facing repeat homelessness and struggling with drug and alcohol addiction. 

As reported by Sky News, the new statistics reveal that homelessness in England is at an all-time high, with 123,100 households, including people in temporary housing, during the three months to June’s close.

These figures mark a 16.3% rise compared to the previous year’s statistics for the same timeframe.

The same data also disclosed that 159,380 children spent time in emergency shelters from April to June this year. 

According to MHCLG, Britain faces “the worst housing crisis in living memory,” with 40% of homeless families relying on B&Bs or daily rentals, a figure that has doubled over the last three years. 

The Housing Secretary stated, “Too many people have been failed by the system time and again.”

She added, “160,000 children face spending this Christmas without a stable place to call home. I am determined to break the cycle of spiraling homelessness and get back on track to end it for good.”

From April, the funding will allocate more than £633m for the homelessness prevention grant, with a £192m increase from the last year, distributed on local demands. 

A £5 million investment will fund pilot schemes to reduce the use of emergency housing in areas with the highest B&B usage.

Shelter, a housing charity, said that the investment boost is “crucial” for councils to support people facing the issue of homelessness. 

It also urged the UK government to construct 90,000 homes per year for the next decade, adding, “You cannot solve homelessness without homes.”

The government sources said this funding is part of the government Plan for Change, which seeks to address the housing crisis, improve tenant rights, and deliver a historic rise in social and affordable housing in a generation. 

Two weeks ago, Labour leader Sir Keir Starmer proposed six milestones and called them a “Plan for Change”, in line with these milestones, the government released a new growth-oriented National Planning Policy Framework last week, giving councils more power to build social homes and necessary facilities like schools, shops and GP surgeries. 

With enhanced adjustability to use Right to Buy receipts, councils can now construct and purchase more homes, along with an additional £450 million to secure housing for families at risk of homelessness.

Adam Hug, Local Government Association housing spokesperson stated, homelessness continues to be one of the biggest challenges for councils, with more people seeking help from local authorities.

The Chief Executive of Crisis, Matt Downie said, “With homelessness at record levels, we’re delighted to see the government taking action to ensure councils have the necessary funding and the ability to use innovative approaches to tackle this crisis.”

Emma Haddad, CEO of St Mungo’s stated they welcomed the government’s decision to invest nearly £1 billion funding in councils to prevent homelessness. 

She added, “We are pleased to be working with the Government on developing its new strategy to end homelessness for good.”

Meanwhile, the new Labour government plans to build 1.5 million homes by the end of the current parliament, with local councils instructed last week to set “immediate, mandatory” housing goals under the plan.