Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 200-216)

MS DIANE HENDERSON, MS HELEN WILLIAMS, MR JOHN ROSSER, MR JOSH SUTTON, MR LES WILLIAMSON AND MR RICHARD ADAMSON

30 NOVEMBER 2004

  Q200 Chairman: Right. Can I take the Forum on to the question about are homeless statistics any good at all?

  Mr Sutton: I would like to answer that, if I may. I think they are good but they could be better. In terms of measuring homelessness statistics through the P1Es, for example—this is a well established thought I think—it does not give you a full picture. For example, 2003-04, Craven accepted 42 people as full duty homeless, we made a total of in the region of 150 decisions but we had over 200 people come through the door and make inquiries about homeless. So figures that go into the P1Es do not reflect necessarily what is going on at front line level and people coming through the door and making inquiries, accordingly there is perhaps a potential for that extra capacity to go under funded.

  Q201 Chairman: Sheffield Hallam University have done a piece of work for the Forum, is that right?

  Mr Sutton: Sheffield Hallam University have done a number of pieces of work in the region. Most recently was the report that was commissioned by Crisis and the Countryside Agency entitled Your Place Not Mine and that was looking particularly at hidden homelessness. The three areas it chose were London, Sheffield and Craven which is, as I said earlier, a large rural district.

  Q202 Chairman: Was the piece of work any good?

  Mr Sutton: The piece of work was good, yes.

  Q203 Chairman: What did it show?

  Mr Sutton: From Craven's perspective it showed a couple of very interesting points really. Of the homelessness people interviewed in Craven, approximately less than 50% came down and presented at local authority. That was for two reasons. The first reason was because of pre-conceived ideas of what any outcome might be.

  Q204 Chairman: In other words, they thought it was useless coming to see you?

  Mr Sutton: In other words, yes. But perhaps more alarmingly was a significant number of them did not even know that the local authority had a duty to provide a homelessness service. It was this aspect that as the homelessness provider, post LSVT, we took on board, and we began to publicise the service.

  Q205 Chairman: What is the point of publicising the service if you cannot meet the need?

  Mr Sutton: I think by publicising the service you are going to generate perhaps a true need because there is a danger of under recording your need because people do not know about it.

  Q206 Chairman: If you record your need you might get the resources?

  Mr Sutton: That is the idea behind it.

  Q207 Mr Clelland: Do you consider the increase in homelessness in the Yorkshire and Humberside area to mirror national trends and what explanation do you have?

  Ms Henderson: There does seem to be a general increase in people presenting as homeless. I am not sure that we are confident as to the reasons why that is the case yet. The bottom line is providing that safeguard for people when they apply, and that we know when people come through the door they are given the appropriate treatment. I guess anecdotally we can say that the widening of the statutory homeless categories from the 2002 Act will have some influence but what most local authorities are saying to us, and members too, is that it is a general increase across the board, it is not just the new categories that have come in, whether that is partly about people being more aware of what help they can get or partly just the way to get housing is to present as homeless. Obviously in parts of the South East, the cost of the private rented sector is prohibitive. It is very complex as to why the numbers have gone up but I do not think the answer is to say it was because of the Act or because of a huge lack of accommodation. It is an addition of all those reasons.

  Ms Williams: Can I add to that? Picking up the point about the homelessness statistics as well, they show who local authorities have accepted a duty to. Beyond that, there are a large number of people in acute housing need who are not accepted as homeless, maybe they are over-crowded or they are single people who do not meet the vulnerability test. There is a huge level of acute housing need out there not being measured by homelessness statistics.

  Q208 Mr Clelland: Does Yorkshire and Humberside have any explanation as to why there has been a huge increase or a considerable increase?

  Mr Adamson: In Scarborough we have had increases because of the extension to the priority groups in the 2002 Act but also we have had a 300% increase in landlords ending short hold tenancies, that seemed to be because of the price increases. It is not the large scale landlord, it is people who own one or two properties and they have decided "My house that I bought for £50,000 is now worth £150,000, I can get the tenant out and sell it". There have been a lot of homeless applications coming in from people who say the landlord wants to sell the property. Hopefully if the housing market is cooling down a bit that phenomenon might stop but a lot of landlords have been getting out of the market because they think they can get a better return for their money somewhere else.

  Q209 Mr Clelland: Are there particular specialist needs in the rural coastal areas?

  Mr Adamson: Yes. One of the challenges in Scarborough borough—it has three centres of population, there is Filey, Scarborough and Whitby—it is very difficult to provide services without people having to move to the services. There is not a very great incidence of homelessness in rural areas mainly because people who live 20 miles outside of Whitby know that if they come in, they will be offered accommodation in Whitby and they are not going to get back to the community where they lived originally. There is a scale issue, in terms of providing the services there are economies of scale. Rural districts do not have the centres of population that make some specialist services economically viable. Scarborough is 300 square miles so if you put the service somewhere in the middle people have got to come a hell of a long way to access that service and that is a feature right across North Yorkshire.

  Q210 Mr Clelland: What particular financial problems has the increase in homelessness created?

  Mr Adamson: Scarborough Council is predicting that its expenditure on bed and breakfast this year is going to be half a million pounds. As I used to work for the borough council and manage its homelessness service before stock transfer, that is more than double what I can ever remember a local authority spending on bed and breakfast in the past. The difficulty being, again as I said, the only provision for homeless families in Whitby is bed and breakfast, there is no hostel in Whitby. People in Whitby will not move 20 miles to move into a council's hostel in Scarborough, quite reasonably. Whitby probably is not big enough to sustain a homeless hostel so the council is working with ourselves and others to develop flexible housing that can be used as temporary accommodation for people who are homeless but if the demand is not there it could be let on a permanent basis to a permanent tenant. That is obviously a long term strategy that may take two or three years.

  Q211 Mr Clelland: Should there be changes in the way that homelessness services are paid for?

  Mr Adamson: Somebody has got to pay for them and at the end of the day it comes down to the taxpayer, whichever pot it comes out of. I am quite sure the local authority would love the Government to pay, but whether that is reasonable or not, I do not know.

  Mr Williamson: Can I just add, the difficulty is that it is general fund expenditure and general fund expenditure is under pressure. Councils are faced with council tax capping. Let me just give you an example. A small district council in North Yorkshire, Ryedale which is based on Malton, the cost to them of bed and breakfast this year is equivalent to 2% on the council tax. If you look at next year, and have to budget 2% for bed and breakfast and 3% for inflation and you are facing council tax capping of 5%, there is not much room for manoeuvre.

  Q212 Mr Clelland: If, as a result of our inquiry, the Committee was to suggest to the Government that they should invest more money in housing projects that would benefit homeless people, what would be your top priority for projects as far as you are concerned?

  Mr Williamson: In North Yorkshire, there is no simple answer to the problem of homelessness because it is an acute symptom of the problem of affordability. The problem of affordability is not easily solvable. If we were looking at measures in the immediate term, it would need to be resourcing more temporary accommodation, hostels and more revenue support through Supporting People. Beyond that you are looking at measures like restricting further the right to buy because it is not a coincidence that the increases in problems of affordability have coincided with councils selling 40 to 50% of their housing stock over the past 25 years. Also, as Richard says, the issue of the prevailing form of tenure in the private sector where there is an inherent insecurity in the form of tenure—the Assured Shorthold Tenancy.

  Q213 Mr Clelland: Do you think we concentrate too much on owner occupation rather than the rented sector?

  Mr Sutton: Yes, broadly speaking.

  Q214 Christine Russell: Finally, can I ask you what is a big question but please can you give us a short answer. There appears to be, amongst the members of the National Federation, huge variance in the way that the legislation and guidance regarding homeless applications is interpreted. Do you feel there is a need for ODPM to look again at the legislation and perhaps consider reviewing it?

  Ms Henderson: I think the legislation may be okay. I think we are waiting for a revision of the Code of Guidance.

  Q215 Christine Russell: How long have you been waiting for it?

  Ms Henderson: I am trying to think. It was mooted when I first started working for the Federation about two and a bit years ago.

  Ms Williams: For the new Homelessness Act.

  Ms Henderson: This is the new Homelessness Act Code of Guidance. I think that will help. One of the issues is that it is used very differently by different areas.

  Q216 Christine Russell: Have you been given an indication as to when that may see the light of day?

  Ms Henderson: No.

  Chairman: On that note, can I thank you all very much for your evidence.





 
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