Originally posted as a column for Inside Housing on November 2.
Today’s first rise in interest rates for a decade is an important symbolic moment but it will make little or no immediate difference to the housing costs of millions of home owners with a mortgage.
The increase from 0.25% to 0.5% could see average mortgage payments rise by around £15 a month but it will not apply straight away to people with fixed rate mortgages and in any case it only restores the base rate to what was a record low between 2009 and the aftermath of the referendum.
Compare that with the continuing squeeze on benefits and tax credits/universal credit that the Institute for Fiscal Studies forecasts today will help to increase the percentage of children in relative poverty after housing costs from 30% now to 37% by 2022.
And contrast it with the latest overall benefit cap statistics also published today: as at August 68,000 families were hit by the lower cap that came into effect a year ago and nearly a third of them are losing between £50 and £100 a week. The cap is now £26,000 in London and £20,000 elsewhere.
Originally posted as a column for Inside Housing on August 10.
If the true scale of homelessness revealed in a report for Crisis is shocking enough now, try looking at the projections for the future.
The report by Professor Glen Bramley of Heriot Watt University estimates that what it calls ‘core homelessness’ affected 160,000 households in 2016, an increase of a third since 2011.
That means that at any one time:
- 9,100 people were sleeping rough
- 68,300 households were sofa surfing
- 19,300 households were living in unsuitable temporary accommodation
- 37,200 households were living in hostels
- 26,000 households were living in other circumstances, including:
- 8,900 households sleeping in tents, cars or on public transport
- 12,100 households living in squats
- 5,000 households in women’s refuges or winter night shelters.
The report estimates that these include 57,000 families including 82,000 adults and 50,000 children, so that the total core homeless population is 236,000.
However, the total is forecast to rise by 76% in the next decade. After a steady rise to 167,000 households by 2021 the total is expected to accelerate over the to 238,000 by 2031 and 392,000 by 2041.
As the graph shows, the increases are expected to be especially sharp in unsuitable temporary accommodation, which includes bed and breakfast accommodation and out of area placements.
Originally published on October 24 on my blog for Inside Housing
Whether we are talking about benefits or housing, a new Ken Loach film and a BBC documentary expose a system that’s failing. In the face of growing demand and shrinking provision, the safety net has gaping holes. Rising homelessness and the queues at foodbanks are the symbols of this. The basics of life – shelter, food and warmth – can no longer be taken for granted.
Seen from the outside this is obvious and so are the answers. Return to provision based on need. Build more social housing. Abandon the divisive rhetoric of strivers and scroungers. Follow the founding principles of the welfare state.
Most people working on the inside will agree with this. But they also have to work within the system as it is and they know that there is little chance of real political change any time soon. This dual reality is perhaps most obvious in the social/business divide within housing associations but it exists right across the public and voluntary sectors too.
Watching I, Daniel Blake and No Place to Call Home over the last few days, these divides were obvious. One is a documentary, the other a film, but both would claim to be revealing truths about life when the safety net fails. But they also beg a less obvious question for people working within the system: how do you know when you’ve crossed the line between doing your best in an impossible situation and making that situation worse? One answer, I’d suggest, lies in the language we use.
Originally posted on July 22 on Inside Edge 2, my blog for Inside Housing
Looking to gauge the effects of the latest benefit cuts on housing? The official impact assessments are at best a starting point.
Documents published for the second reading of the Welfare Reform and Work Bill on Monday evening (available here) do give the Department for Work and Pensions’ (DWP) view on what to expect, but there are several reasons why it is a severely blinkered one.
First, they only cover what is actually in the Bill and many of the main housing benefit changes in the Budget do not require primary legislation.
So there is an impact assessment of the five-year freeze on most working age benefits but it does not include the freeze of the local housing allowance. Similarly, we do not get the DWP view on ending automatic entitlement to housing benefit for 18 to 21-year-olds because that will be done by regulation rather than primary legislation.