London Councils warn homeless costs unsustainable

Councils in London have warned there can be ‘no return to business as usual’ on homelessness after the coronavirus pandemic.

The London Councils group said boroughs are spending an extra £50 million on homelessness and rough sleeping due to Covid-19, which is not sustainable.

With emergency accommodation secured for almost 5,000 rough sleepers since the start of the pandemic, the cross-party group believes there is now ‘a golden opportunity’ to end rough sleeping altogether.

However, London Councils has highlighted the need for sustained support for tackling homelessness.

Despite emergency investment from the government, boroughs are increasingly worried about the funding available for rough sleeper support.

London Councils has long warned that these costs are unsustainable – with around £200 million of the boroughs’ £919 million annual expenditure on homelessness and rough sleeping in 2017/18 not covered by government grants or councils’ housing income.

‘There can be no return to business as usual on homelessness,’ said London Councils’ executive member for housing and planning, Cllr Darren Rodwell.

‘We now have a golden opportunity to tackle homelessness and end rough sleeping altogether, if we sustain and build on the progress made in response to COVID-19.

‘Chronic housing insecurity leaves people more vulnerable to illness, which is why the government was right to introduce a ban on evictions and to help fund emergency accommodation for rough sleepers. This has kept people safe, protected public health, and brought much-needed stability for many vulnerably housed Londoners,’ added Cllr Rodwell.

‘But we can’t afford to squander these achievements. Without ongoing measures to help keep people in their homes, we expect homelessness rates to shoot back up again – probably to even higher levels than before the crisis.

‘A summer spike in homelessness would be extremely damaging to London boroughs’ finances. Even before the crisis, boroughs weren’t receiving enough funding to meet their homelessness costs. We’re now spending an extra £50 million on homelessness and rough sleeping due to Covid-19 – an unsustainable situation has become even more unsustainable.

‘London boroughs share the government’s ambitions on reducing homelessness – but action is needed now.’

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