Written evidence submitted by Halton Housing Trust [HOL 29]

Executive Summary

1.             The Trust welcomes the Committee’s inquiry on this important housing issue and appreciates the opportunity to be able to submit evidence.

2.             At an operational level, we are seeing an increase in prevention cases coming through. These invariably involve people in the single homeless category. We would urge the Committee to consider whether that as more prevention cases arise, other conflicting policy changes linked to welfare reform may result in these cases being subject to benefit cuts that will prevent them being housed. 

3.             The Trust’s response focuses on 3 main themes:

• The differing causes of homelessness for households, couples and single people.
• Steps to tackle homelessness.
• The relationship between homelessness and the availability of social housing.

4.             In the light of the evidence presented against these three themes, the Trust would ask the Committee to consider:

• Review the Homelessness Monitor: 2016 report published by the Joseph Rowntree Foundation on 28th January 2016. Its findings are directly relevant to the work of the Committee as it evaluates the impact of previous support initiatives and outcomes.
• Ensure that specialist and successful organisations, such as Emerging Futures mentioned later in this response, continue to access funding and access Housing Benefit on behalf of their clients to enable them to successfully re-integrate into the community. This will ultimately save money for the Government.  
• To focus resources in the areas where they will have most impact, rather than being used to create staff whose primary role is to give advice and assistance only.  

Introduction

5.             Halton Housing Trust is a forward thinking and dynamic not for profit housing association that owns and manages 7,000 homes in the Cheshire towns of Runcorn and Widnes. We provide a balanced mix of properties as part of our objective of “Improving People’s Lives”.

6.             We employ 300 people, including 80 specialist trades staff in our Property Services team.

7.             The Trust was formed in December 2005 following the transfer of homes from Halton Borough Council.   The Trust works closely with the Local Authority and acts as agents for them in managing the Halton arm of the Merseyside Sub Regional Choice Based Lettings (CBL) Scheme: Property Pool Plus. The Trust is one of over 30 other housing associations across the Merseyside Sub Region that advertise and let their homes under this Scheme. 

8.             The Trust’s Chief Executive is the independently appointed Chair of the neighbouring Warrington Homelessness Commission.

The Differing Causes of Homelessness for Households, Couples and Single People.

9.             Based solely on information recorded by the Trust, the main cause of a loss of home, in particular for families, is through loss of their private rented sector tenancy, due predominantly as a result of the landlord’s intention to sell the property.  The other main reason is due to relationship breakdowns. This is frequently cited by single males who commonly have other lifestyle challenges, including alcohol and long term drug abuse or mental health issues.

10.        Anecdotally the number of cases for women (and to a lesser degree men) suffering from Domestic Abuse does appear to be on the increase.   The specific causal factors are unclear, although it is thought to be linked to the time of year when finances are under pressure from a number of factors.

11.        The figures below show snapshot details of statutory homeless reasons recorded during 2015 within Halton:

12.        Details of prevention cases logged with the Trust since May 2015 show the majority of those placed in Band B[1] within the Property Pool Plus (Allocations) system fall within the 18 to 34 age group.  We do not currently split this out into gender, however the table below does indicate their economic status. 

13.        The Trust currently has 158 single applicants across all bands that are under the age of 35. Our concern is whether this group will qualify under proposals to receive additional priority for housing? If so, has the Committee considered the wider implication of the Welfare Reform Act 2012 on this group and in particular the benefit cap that applies? 

14.        Job Seekers are likely to be the group most adversely affected by the proposals to apply the Local Housing Allowance across housing associations. 13 single persons of the 22 job seekers in the table above have been classified as homeless prevention cases already.  This group in particular will suffer the consequence of not being able to afford to move into a home independently. Extending the homelessness duty to single persons will create a group of people who will be given false hope.   This is because the application of the LHA cap on Housing Benefit and Fixed Term tenancies will ultimately cancel out any potential benefits of this group receiving statutory preference.

15.        Our research shows that whilst homelessness statutory decisions are falling, prevention statistics are rising, as illustrated in the table below. 

Steps to Tackle Homelessness

16.        The Trust works closely with Halton Borough Council and contributes to their Homeless Strategy. One of the notable successes of the strategy are the initiatives that focus more heavily on preventative measures to tackle homelessness within the Borough, as well as being able to deal with the more traditional reactive service provision. A copy of this document can be found on their website at: www.halton.gov.uk   

17.        The Trust contributes to the Annual Homeless Forum and relevant task and finish groups which comprise of representatives from:

• Various council departments, including Housing Solutions, Policy & Strategy, Youth Offending, Youth Service, Benefits and Community Safety;
• Temporary accommodation scheme providers;
• Citizens Advice Bureau;
• Cheshire Police, Probation;
• Other Registered Providers of social housing in the Borough;
• Health – Clinical Commissioning Group/Public Health.

18.        We have developed a Management Agreement with Social Services Young Peoples Team offering starter homes to Children in Care from the age of 17 years.  Once they reach 18 and are able to run their home the tenancy is transferred into their name. To date, we have helped over 10 young people since its introduction.  We are seeing an increase in requests for this type of assistance.

19.        In April 2015 we opened a purpose built hostel with 36 self-contained units and 3 direct access units. Referrals to the hostel are via the Homeless Team through their “Mainstay” assessment and recording system.   The hostel is intended to help single people of any age group. The implication that funding for support may be cut further places vital facilities such as this at considerable risk. The extension to the statutory duty of care may be in direct conflict with the limitations being placed on Supporting People Funding.

20.        Shared tenancies are fraught with difficulties. Whilst they may work for a small number of people, for the majority of under 35’s these are not a viable housing alternative.

21.        The approach should focus on tackling the root cause, putting the right support in place at the right time.  The Committee should consider how previous funding has led to real long term improvements and apply best practice across all local authorities.  Given the continued rise in homelessness, funding should be channelled and provide better outcomes, ones that are developed by the agencies involved and where appropriate by the client group. 

22.        An example of this is the “Gateway” programme, established by NHS England and Probation Services. They received short term Government funding to kick start effective partnerships and developed an understanding of the underlying issues faced by offenders leaving prison

23.        The Trust has entered into one of these partnerships with Emerging Futures. They provide the specialist support needed through peer mentoring and local drug and alcohol teams.  We have set up a specific shared flat with 3 ex-offenders.  The aim is to provide a safe environment away from associates to aid recovery and to help them re-integrate into the community. It looks to provide an effective, seamless route from prison to establishing a home whilst continuing with an abstinence programme. It provides financial benefits to statutory agencies by reducing dependence and health benefits to individuals. Our experience is that this has been a successful and cost effective solution.

The Relationship between Homelessness and the Availability of Social Housing

24.        The current Property Pool Plus Allocations Policy used by the Trust is shared across the Borough and wider sub region and looks to provide a greater degree of assistance to those who are potentially homeless.  We work closely with the LA using data sharing protocols.

25.        By ensuring potentially homeless applicants have a higher priority, one of the unintended consequences is that Band B within the Allocations Policy is now the largest band. As explained earlier, Band B cases are classified as High Priority. The Trust has found that there is a tendency for applicants to present themselves in such a way that they can be promoted to this Band to get this higher priority and be housed more quickly.

26.        The actual consequence of this becoming the largest band is that we will need to introduce quotas. This will be to ensure all residents applying within the borough have a fair opportunity to access good quality affordable housing. This group of applicants will be housed before those in other bands and this severely reduces the opportunity for everyone across the bands to be housed.    Copies of the Allocations Policy can be found at www.propertypoolplus.org.uk

27.        There is a mismatch between demand and available homes. 59% of applicants registered in Halton are eligible for one bedroom accommodation. However only 42% of the 1,200 lettings undertaken were allocated to those requiring one bedroom properties.

28.        The impact will be felt more acutely by organisations who are unable to let 2/3 bedroom flats. This will be exacerbated as affordability within the social rented and private rented sectors become increasingly out of reach, as a result of the LHA caps taking effect.  

29.        Some hypothetical examples have been worked up with assumptions such as zero hours contracts (source: www.ons.gov.uk):                                                                                                                                                                       

• Using an average one room rate of £90 per week for the 48 week rent cycle used by the Trust and Single Room Rate (SRR) of LHA £52.94 per week;  any  customer, under 35, reliant on Housing Benefit (HB) will pay at least £37.05 per week more rent than currently.                                                                                                                                                                       
• A 21 year old currently gets £50.35 per week HB, but once the SRR is applied, this will reduce dramatically meaning that full rent becomes payable.

• A 21-24yr old currently gets £38.84 per week HB, SRR will reduce this HB entitlement to £1.79 per week.

February 2016