Welfare reforms will lead to rise in homelessness, charities warn Government
Charities have urged a rethink by Government on the proposed welfare reforms.
Going ahead with welfare reforms will drive more people into homelessness, a number of major charities have warned the Government.
Shelter and Crisis are among the signatories to a letter to the Work and Pensions Secretary Liz Kendall, voicing concerns over the risks from her proposed changes to the benefits system.
The Government is already under pressure over the controversial reforms, with more than 40 Labour MPs earlier this month urging the Prime Minister to pause and reassess planned cuts, saying the proposals are “impossible to support”.
The proposed reforms, set out earlier this year, would tighten the eligibility criteria for personal independence payment (Pip) – the main disability benefit in England – and see the sickness-related element of universal credit (UC) cut.
They also proposed delaying access to the health element of UC to those aged 22 and over, with the aim of reinvesting savings to support young people into work or training.
The package of measures is aimed at reducing the number of working-age people on sickness benefits, and the Government hopes they can save £5 billion a year by the end of the decade.
But an impact assessment published alongside the reforms warned some 250,000 people – including 50,000 children – could fall into relative poverty as a result of the changes.
Now a letter, co-ordinated by the St Mungo’s homelessness charity, has stated the “deep concern” organisations within the sector feel about the reforms.
In the letter, which has also been sent to Deputy Prime Minister and Housing Secretary Angela Rayner, they said: “We can only conclude that the proposed changes will increase the number of people at risk of becoming homeless for the first time, increase the number of people we have helped resolve their homelessness fall back into it and increase the length of time it takes to resolve people’s homelessness in the future.”
They stated that while they share the Government’s “ambition to establish a thriving and inclusive labour market and give people the opportunities and support they need to get back to work”, the reforms “will not help achieve your ambition and therefore we as a sector cannot support them”.
The letter stated that the reforms will “push people further away from the labour market, increase homelessness and put excessive pressure on statutory services”.
They said increases in already record levels of homelessness “will have a catastrophic impact on mental and physical health, education and employment opportunities” and have a “domino effect of imposing a significant financial cost to the state” in paying for more temporary accommodation and emergency homelessness services.
The latest official Government statistics, published in April, showed new record highs in both households and children living in temporary accommodation – a form of homelessness.
There were 127,890 households in this situation as of the end of December, while the total number of children in temporary accommodation stood at 165,510.
The charities added: “Homelessness devastates people’s chances of employment. These cuts and eligibility restrictions will not give people a pathway to work and we urge the Government to reconsider its position.”
It was reported earlier this week that benefit claimants could be given longer “transitional periods” to seek out other benefits if they lose out as a result of the reforms, in what has been seen by some as an effort by Sir Keir Starmer to soften the blow of the cuts amid the growing threat of a backbench rebellion.
Emma Haddad, chief executive of St Mungo’s, said: “Many people rely on these benefits to manage complex health conditions as part of their recovery from homelessness and pay for essential utilities. With already eyewatering rents, these benefits help people cover their additional costs.
“Without them, we fear people will be increasingly unable to afford to secure somewhere safe to live.
“Homelessness has already pushed these people to the edge. We should be supporting them to rebuild their lives, not creating more challenges for them to overcome.”
A Government spokesperson said: “We will never compromise on protecting people who need our support, and our reforms will mean the social security system will always be there for those who will never be able to work.
“At the heart of the government’s reforms is a £1 billion scheme to help the long-term sick or disabled out of poverty and into good, secure jobs.
“We have also raised the national living wage, increased benefits and given additional help to the poorest households, as part of our Plan for Change.”
