Future challenges

The election of the Coalition Government presents significant challenges for the homelessness sector. There are a number of strategic changes which look set to have important implications for services for single homeless people and strategic responses towards single homelessness, which include: the localism agenda; the Big Society; and welfare reform and housing reform.

8.4.1 The localism agenda

The localism agenda will give local authorities far more discretion in relation to strategic responses towards single homelessness. Localism, coupled with the removal of the Supporting People ring-fence, will create a context in which authorities decide how much attention is focused on single homelessness, both in a strategic sense and in terms of the range and extent of housing support services they provide. As noted earlier, there are concerns that this could result in the needs of single homeless people being neglected as funding is diverted to other service users, such as families with children or older people. 8.4.2 The Big Society

The Coalition Government has also promoted the idea of the Big Society. This will attempt to reintroduce voluntarism into social and welfare policy, essentially encouraging third sector and charitable bodies to take a far larger role in tackling social problems, but with increasingly limited financial support from the State. Localism and the Big Society create considerable potential for flexibility in service provision, which might lead to important innovations. There is scope for effective and coordinated responses to single homelessness at local authority level, using the new powers that are part of localism to engage fully with the voluntary sector and grass roots groups in tackling single homelessness. However, there may also be the freedom for a local authority to opt to do very little in response to single homelessness. This is a particular concern at time when funding is scarce and there are competing demands for resources from

other groups like older people with support needs, who are far more numerous than single homeless people. Support for single homeless people may also not be politically popular, creating a pressure on elected politicians to direct resources away from this group. In the absence of central guidance, minimum national standards, and in the face of public expenditure cuts, this may well happen. 8.4.3 Welfare and housing reform

The Coalition Government has announced a core integrated welfare to work programme and a number of measures designed to support people to find employment. The Work Programme (which should be in place nationally by summer 2011) will supersede many of the national programmes currently on offer and these will be phased out. The support currently provided by programmes such as the Flexible New Deal will be folded into the Work Programme. It remains to be seen how the Work Programme will operate in practice and what the role of smaller voluntary providers will be, however, concerns have been raised that smaller providers may lose out under future contracting arrangements. Importantly, Work Programme contractors will be paid by results. This could result in their ‘cherry-picking’ the most work ready individuals which could have real implications for single homeless people who may require more intensive support. Recent welfare reforms are intended to make work pay for people on benefit through the provision of a Universal Credit and a more gradual tapering off of benefits for those entering work. Whilst this may remove one significant barrier to employment for single homeless people, there will remain a need for services to support people, who are able, to enter paid work. However, whilst previous governments have sought to support and encourage people into work the new Government’s approach is far more punitive The Government has also announced a new system of conditionality backed up by tougher sanctions, including withdrawal of benefits, for those who do not comply. Research has shown that single homeless people face many barriers

to employment and to sustaining paid work, and it is likely that single homeless people with ongoing support needs may find themselves subject to sanctions, including a reduction or even complete withdrawal of benefit.

Changes to Housing Benefit and Local Housing Allowance

As noted earlier, Housing Benefit restrictions such as the Shared Room Rate have been a barrier to prevention for young people who cannot afford to meet the shortfall between the restricted rate of Housing Benefit and the rent charged by the landlord, resulting either in rent arrears and the likelihood of eviction, and/ or in people being left with insufficient income to live on. This situation is now set to worsen as the new Government has announced that the Shared Room Rate restriction will be extended to people aged under 35 from April 2012.1 _{Further, Housing Benefit will be} reduced 10% after 12 months for Jobseeker Allowance claimants, which will also leave people facing real hardship and unlikely to be able to meet their rent. Similarly, Local Housing Allowance2 _{is set to be capped from April 2011} and from October 2011 calculated at the 30th percentile of rent. Rather than the median as at present this will result in very significant drops in benefit levels.3 _{A study commissioned} by Shelter estimated that these cuts would be likely to place up to 62,000 households without dependent children (and therefore unlikely to be eligible for assistance under the homelessness legislation) into serious difficulty and at risk of homelessness (Fenton, 2010).

Housing reform

The Government has announced proposals for radical housing reforms. The Comprehensive Spending Review saw the housing budget cut from £8.4bn over the previous three year period to £4.4bn over the next four years. New social housing tenants will have to pay higher rents (they will face charges of up to 80% of market rates). Social homes for life are also set to end for many new tenants, who might be handed fixed term contracts, under the proposals.