Select Committee on Public Accounts Minutes of Evidence


Supplementary note from the Office of the Deputy Prime Minister

Q39-40—HIGH LEVELS OF HOMELESSNESS IN YORKSHIRE AND THE HUMBER

  Levels of homelessness are influenced by a variety of factors, including housing supply and demand, other structural factors like the economy, wider social and personal factors including family and relationship breakdown, and changes in the homelessness legislation and its implementation by local authorities.

  The official statistics on statutory homelessness, published quarterly by ODPM, measure the "flow" of homelessness cases—that is the number of households approaching local authorities and being accepted for help during each quarter—and the "stock" of households who, having asked for help, have been placed in temporary accommodation and are still in such accommodation at the end of the quarter, waiting for a settled home.

  The use of temporary accommodation is heavily concentrated in regions which are known generally for higher levels of housing demand. The number of households in temporary accommodation in the Yorkshire and the Humber region is relatively low. Numbers and percentages for each region at 31 December 2004 are set out in the table below:

Table 1: Households in accommodation arranged by local authorities in England under the homelessness legislation, by Government Office region, as at 31 December 2004.
RegionH'holds in TA
at 31/12/04


% of England total
North East8401
North West2,7303
Yorkshire & the Humber2,220 2
East Midlands2,8703
West Midlands2,6003
East of England8,350 8
London61,67061
South East13,34013
South West6,4206
England101,030100


  The flow of homelessness is not so heavily concentrated in areas of higher demand for housing. Numbers, rates per 1,000 households and percentages for households accepted by local authorities as unintentionally homeless and in priority need over the course of 2004 are set out in the table below. This shows that, while London has the highest number and rate per 1,000 of homelessness acceptances in England, Yorkshire and the Humber has the third highest rate per thousand, and the South East has the lowest rate per 1,000.

Table 2: Unintentionally homeless households in priority need accepted by local authorities in England during 2004, by Government Office region.
RegionHomelessness
acceptances in
2004
Acceptances
per 1,000
h'holds
% of England
total
North East8,5107.8 7
North West17,7206.2 14
Yorkshire & the Humber14,590 6.911
East Midlands9,5705.4 7
West Midlands15,080 6.912
East of England10,680 4.68
London28,0508.7 22
South East13,4604.0 11
South West10,1004.7 8
England127,7606.1 100


  Together with the North East, the Yorkshire and the Humber region experienced the highest percentage increase in homelessness acceptances in recent years, nearly doubling between 1999 and 2003, although numbers fell (as they did nationally) in 2004. The statistics indicate that the most significant increases occurred amongst households that didn't contain children (possibly an impact of the wider priority need categories brought into force in 2002, covering groups more likely to consist of single person households) and former asylum seekers given leave to remain. The level of acceptances in Leeds and Sheffield has had a significant impact on the figures for the region as a whole.

  Overall, the relatively high level of homelessness acceptances in the Yorkshire and the Humber region confirms the general understanding that homelessness can be caused by a variety of factors that go beyond housing demand and supply, and that effective responses to homelessness require more than housing.

Q51-52-53—CHILDREN'S SOCIETY RESEARCH ON YOUNG RUNAWAYS

  The Children's Society research report "Living on the Edge: the experiences of detached young runaways" was launched on 2 March. The research involved a series of 23 interviews with young people aged 13 to 21 who were categorised as having run away from home, been thrown out or abandoned by parents before the age of 16. It has been published as part of the Children's Society's Safe and Sound campaign, which is calling for a network of emergency accommodation and local authority plans for children who run away.

  The Green Paper, "Every Child Matters", published in September 2003 sets out the outcomes that Government wants to see for all children. They need to be safe, healthy, enjoy and achieve, make a positive contribution to their community, and have the opportunity to enjoy economic well-being. The Children Act 2004 provides a new framework to enable these outcomes to be achieved.

  Our strategy for tackling homelessness, "Sustainable Communities: settled homes, changing lives", published on 14 March 2004, sets out in section 4—Support for people when they are vulnerable—the action ODPM is taking in partnership with the Department for Education and Skills to help children and young people at risk of homelessness.

  This includes ensuring effective joint working between housing and social services in the development of Children's Trust arrangements. Under new arrangements being implemented under the Children's Act 2004, the Director of Children's Services will be responsible for ensuring that local children's services meet the needs of children and young people while an Integrated Inspection Framework will ensure that children's services are meeting the required standards.

  ODPM's Homelessness and Housing Support Directorate is investing £200,000 over two years to secure the future of the London Refuge for Runaway Children, which has provided accommodation and support for over 2,000 child runaways since 1994.

  April 2005 will mark the beginning of a second year of a community based refuge pilot project, funded by the Department for Education and Skills. There are six projects throughout England piloting a range of approaches to help detached young people, including help lines, family mediation and outreach work. The pilots are providing some promising evidence on earlier and more effective interventions with young people.

  The pilots are all able to provide different options for emergency accommodation, for example with family-support foster carers, emergency beds in children's homes, or in a refuge service provided by a voluntary sector agency, all conforming to established care standards.

Q98—HOMELESSNESS IN WALES

  The National Audit Office are leading on the production of a supplementary note to respond to the Committee's questions about homelessness in Wales and this will require further discussion with colleagues in Wales.

Q112-113—HOMELESSNESS STRATEGIES, SOCIAL SERVICES INVOLVEMENT AND FUNDING

  Figure 29 of the Comptroller & Auditor General's Report, "More than a roof: Progress in tackling homelessness", sets out a number of areas for further development identified in local authorities' homelessness strategies. These included a finding that Social Services often did not take part in the reviews of homelessness on which strategies are based, and that four out of ten authorities had failed to identify the resources they need to fulfil their strategy.

  These findings were drawn by the Comptroller & Auditor General from an evaluation of homelessness strategies conducted by Housing Quality Network Services, which ODPM commissioned and which was published in November 2004 ("Local Authorities' Homelessness Strategies, Evaluation and Good Practice"). The evaluation was commissioned and designed expressly to offer local authorities and others a picture of how they had tackled their new responsibilities under the Homelessness Act 2002 to conduct a review and develop a homelessness strategy. In particular, the evaluation aimed to aid future service development.

  While Figure 29 of the Comptroller & Auditor General's Report highlights the areas where a need for further development has been identified, it is important to note that this is set in a context of considerable progress. In their evaluation, Housing Quality Network Services found that:

    "The exercise has been an impressive undertaking that, at best, drew in the views of service users, other agencies and authorities and other council departments as never before to focus on tackling homelessness."

  And that:

    "Overall, it has been a very positive process, and the universal view among participants in a workshop as part of the evaluation was that, although the task had been quite a difficult one, it was highly useful and they felt much had been gained by it, making a difference to the homelessness picture across the country."

  The Comptroller & Auditor General's Report acknowledges this progress too, finding that:

  "In relation to local progress and strategy making:

    —  strategies have helped to raise the profile of homelessness issues and the need to tackle them;

    —  strategies have led to stronger partnerships in many areas;

    —  strategies have led to changes in approach".

  We are using the findings from this evaluation and the Comptroller & Auditor General's recommendations to work with local authorities to ensure that good practice examples become more widespread as strategies are reviewed and renewed.

  Existing statutory guidance on homelessness, issued in July 2002, makes clear the statutory requirements on co-operation that exist between local housing and social services authorities.

  ODPM's Homelessness and Housing Support Directorate has worked with a number of housing and social services authorities to develop more effective joint approaches and will continue to do so. This work is looking at, for example, joint housing and social services protocols for dealing with homeless 16 and 17 year-olds and families with children who have become homeless intentionally.

  This will be under-pinned by our joint work with the Department for Education and Skills on statutory guidance on homelessness and children's services in connection with housing and social services duties and functions, as set out in our recent strategy for tackling homelessness, "Sustainable Communities: settled homes, changing lives" and in the Government's recent response to the ODPM Select Committee report on homelessness.

  During the development of local homelessness strategies in 2002-03, and subsequently, all local authorities have received homelessness grants from ODPM. These have provided an additional resource for them to set up and provide new services to reduce rough sleeping, avoid the use of B&B hotels as long-term accommodation for families, and achieve other positive outcomes, including more effective prevention of homelessness. In many cases, ODPM grants have enabled authorities to take forward initiatives identified in strategies where other appropriate sources of funding had not been identified. From a survey in 2002-03, we know that local authorities were using homelessness grants to adopt a number of new approaches to prevention:

    124 were increasing their own staff resources to improve services

    108 were providing support targeted at young people

    107 were establishing/expanding new rent deposit schemes

    97 were improving the provision of advice on housing options and homelessness prevention

    80 were establishing or expanding mediation services, particularly for families.

  Many of these approaches are delivering savings for local authorities which may be re-invested in improved homelessness services. The Comptroller & Auditor General's Report says that "moving people out of bed and breakfast accommodation has delivered cost savings for local authorities, which may amount to £40-£50 million each year."

  In another ODPM survey, local authorities estimated that planned action on homelessness prevention in 2003-04 would enable them to save an average of £164,000 per authority while, for the same year, 82 local authorities had established "invest to save" budgets with an average value of £143,000 per authority.

  Our homelessness strategy, "Sustainable Communities: settled homes, changing lives" confirms a 23% increase in homelessness grants to local authorities and voluntary sector agencies, rising to £74 million in 2007-08. We have also said that future allocations will be used to support action that meets our aim to prevent homelessness and halve use of temporary accommodation by 2010, that we will consider ways in which greater certainty can be given on likely grant levels beyond a single financial year, and that we will look for new ways to encourage innovation.

Q123-125-127—HOUSING NEED

  The Review of Housing Supply, "Delivering Stability: Securing our Future Housing Needs", conducted by Kate Barker reinforces ODPM's analysis, calling for a step-change increase in housing supply.

  Several of the Committee of Public Accounts members' questions focused on Figure 7 on page 29 of the Comptroller and Auditor General's Report, "More than a roof: Progress in tackling homelessness". This repeated a number of estimates of housing need, drawn from Table 5.2. on page 93 of the Barker review, which drew on work by Alan Holmans from 1996 to estimate the backlog of households in housing need.

  The Barker review itself says of the Holmans work that "It is very broad: it is not necessarily just a measure of housing undersupply" and that it is "largely a frictional backlog, which could be reduced by better use of the existing housing stock and more rapid administrative systems". Not everyone regarded as being in housing need will need social housing. That is why it is not appropriate to compare the backlog estimate only with the number of new social rented homes being provided.

  The Barker review included estimates of newly arising need as well as the backlog of housing need. It concluded that an extra 17,000 social rented homes would be needed per year to deal with newly arising need and 23,000 to tackle new and backlog need. However, the review also recognised, in paragraph 5.36, that:

    "New units and the investment required to deliver them could not be delivered immediately due to capacity constraints and the need to identify where supply can best be located to meet demand. Increasing social housing provision should therefore be managed in a staged way to ensure capacity to deliver and value for money are maintained."

  Investment decisions reached in the 2004 Spending Review provide for a good start on this managed increase in social housing supply, enabling increases that deliver an extra 10,000 social rented homes by 2007-08.

  However, new and existing housing need will be met through the whole range of measures included in ODPM's recent five year plan for housing, "Sustainable Communities: Homes for All". These include:

    —  delivering 1.1 million new homes in the wider South East by 2016

    —  helping into home ownership 80,000 households, most of whom are currently renting privately or living with family—and, as announced in the Budget, work to use the resources of the private sector to bolster ODPM's low cost home ownership schemes could help a further 20,000 (subject to the outcome of our discussions with the Council of Mortgage Lenders)

    —  introducing an extended Homebuy scheme—there are up to 300,000 council and housing association tenants unable to afford the Right To Buy or Acquire who might be able to afford to buy a share of their home under such a scheme

    —  increasing investment in new social rented homes to provide 75,000 homes in total over the next three years, including 6,300 through the Housing Private Finance Initiative—a 50% increase in supply delivering an extra 10,000 homes per year by 2007-08

    —  making better use of existing housing—for example by expanding choice based lettings, improving mobility through moveUK, improving the quality and availability of private rented homes (including action on empty homes to bring 25,000 back into use by 2010)

    —  increasing funding for action to prevent homelessness by 23%, up from £60 million now to £74 million by 2007-08—a total of £200 million over the next three years

  Through these measures, the Government aims to offer everyone the opportunity of a decent home at a price they can afford.





 
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