Andy Slaughter MP, Labour’s Shadow Housing Minister, responding to the Government’s announcement of funding the costs of the Homelessness Reduction Bill, said:

“Labour has said from the start that while new legislation to tackle the scandal of high and rising homelessness is welcome, it must be fully funded. Today’s statement offers funding which runs out after two years and raises concerns that Ministers will not honour the promise made in the House of Commons that ‘the Government will fund the additional costs of the Bill’.

“The sum of £35 million offered for the next financial year, when divided between councils is likely to be less than the estimates made by authorities themselves.

“Particularly worrying is that the funding falls to zero within two years. There is no evidence provided by the Government that savings will offset costs by this time. It is essential that Ministers both provide the calculations on which this claim is based and that they agree to a full review of costs after two years, as the Local Government Association has requested.

“Finally, the problem that has beset the Bill from the start is no nearer resolution. Legislation alone will not cure the epidemic of homelessness that has seen rough sleeping double since 2010. So the Government must also bring forward plans to building more genuinely affordable homes, and dedicate at least 4,000 of these to avert rough sleeping as Labour has advocated.

“Labour will continue to work to make this cross-party Bill a success, but it is up to the Government to demonstrate that their commitment to fund the full costs of this legislation is more than just hot air.”

Ends

Notes

1.   The Written Statement announcing the funding is available here: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-01-17/HCWS418/   

2.   The Minister Marcus Jones’s commitment to fund the full costs of the new legislation was made at the Second Reading of the Homelessness Reduction Bill, 28th October 2016 https://goo.gl/M9awd8

3.   Independent bodies and local authorities have made much higher estimates of the costs of the new legislation. The Association of Housing Advice Services, a non-profit organisation, estimates London’s 32 boroughs will face a combined bill of £161m to implement the new duties: http://www.insidehousing.co.uk/new-homelessness-duties-could-cost-london-councils-millions/7018132.article