The Homelessness Reduction Act: Will it work for young people?

Executive Summary

The Homelessness Reduction Act marks a fundamental shift towards a preventative approach, improving the support available to those who are homeless or at risk of homelessness. It will ensure that local authorities take all reasonable steps to support someone experiencing, or at risk of, homelessness on the condition that they cooperate with their local authority.

Our research has highlighted the aspects of the Act that local authorities are doing well and are positive about, and the aspects that will prove a challenge.

It also highlights factors which are beyond the scope of the legislation, but that may hinder implementation. The key message of this report is that young people have needs distinct from the wider homelessness population. Local authorities, partner agencies and central government all have a responsibility to ensure that the provision which stems from the Act works for young people.

As the main cause of youth homelessness is family breakdown, all agencies must be alert to the factors which might push a family towards breaking point.

Mediation, or conciliation, is not sufficient to tackle the underlying problems that are faced by many of these families and a more comprehensive approach will be needed. It is absolutely essential that agencies work together locally to achieve this and many local authorities are already working well with agencies in their area. However, it is concerning that the agencies that local authorities are less likely to work effectively with are NHS services and Jobcentre Plus. It is crucial that effective working relationships are in place across those agencies, as well as in agencies not currently subject to the duty to refer including the police, GPs and further education institutions.

Where youth homelessness cannot be successfully prevented, the relief duty should ensure that a local authority helps a young person to secure accommodation. However, there are concerns about the level of support a local authority might offer in order to fulfil their duty to ‘help to secure’ accommodation. Ultimately the onus is still on the young person, unless they are owed the main housing duty. It is also crucial that the right, age[1]appropriate, accommodation options are available.

Many young people with support needs will enter supported accommodation; however there are concerns about how this accommodation will be funded in the future. Many young people will have no choice but to seek accommodation in the private rented sector, which is incredibly difficult to access due to availability and affordability. Almost all councils stated that Local Housing Allowance restrictions make it difficult for young people to secure tenancies. With so many barriers in place, landlords are reticent to let to young people, particularly those on benefits. Finally, there is concern among local authorities about the level of demand now that there is a duty to provide all eligible applicants with an assessment, and the amount of funding currently in place to do so.

Overall, there is much to be positive about now that the Homelessness Reduction Act has come into force. Many local authorities are rising to the new challenge and innovating in order to provide the best possible service to young people in their area.

However, it remains to be seen whether external factors including the housing market and the welfare system will prove to be an insurmountable challenge.

Key findings and recommendations

Findings

What do local authorities say are the barriers they face, prior to the Homelessness Reduction Act, in delivering their housing duties to young people?

• 99% say the shared accommodation rate makes it difficult to find under 35s an affordable tenancy in the private rented sector
• 78% say unwillingness of landlords to let to young people is a barrier to delivering housing duties
• 93% say the roll out of Universal Credit makes landlords less likely to let young people on benefits
• 85% say welfare reform aimed at young people is a barrier to delivering housing duties
• 80% say lack of suitable housing stock is a barrier to delivering housing duties
• 68% say a lack of suitable supported accommodation is a barrier to delivering housing duties

What do local authorities say would help them to deliver their new duties under the Homelessness Reduction Act?

• 79% say increased burdens funding would help them deliver their new duties
• 96% say the automatic payment of housing costs to landlords for anyone who has experienced homelessness would help them deliver their duties
• 88% say an expansion to the exemptions from the shared accommodation rate to include all under
• 35s who are homeless or at risk of homelessness would help them deliver their duties
• 80% say training for front line staff would help them deliver their duties
• 87% say good practice guides would help them deliver their duties
• 72% say establishing a multi-agency working group would help them deliver their duties

We analysed data on the number of young people presenting to their local authority alongside Homelessness Reduction Act funding allocations:

• 86,000 young people presented to their local authority because they were homeless or at risk of homelessness in 2016/17
• Each assessment will cost £44 and on average, prevention and relief activities will cost £530 per case
• 57 per cent of local authorities do not have sufficient funding to cover the first year of the Homelessness Reduction Act for young people alone

Recommendations

Young people in receipt of a prevention or relief duty are at crisis point. With the right support and resources, homelessness can be resolved and prevented:

1. The Department for Work and Pensions should exempt from the shared accommodation rate all young people who have received prevention or relief support under the Homelessness Reduction Act to broaden access to the private rented sector.
   
   This is crucial for those at risk of losing a tenancy because they can no longer afford it, and for those trying to access the private rented sector for the first time – including young people moving on from hostel accommodation.
2. The Ministry of Housing, Communities and Local Government should extend the list of agencies that have a duty to refer to include the police and further education institutions.
   
   In some areas, particularly rural communities, Jobcentres and council offices can be located large distances from young people at risk of homelessness. The police and further education institutions play integral roles in their local communities and should be added to the list of local gateways to support.
3. The Department for Work and Pensions should introduce automatic alternative payment arrangements for all young people who have received prevention or relief support under the Homelessness Reduction Act.
   
   This would provide landlords with reassurance when renting to young people who are claiming Universal Credit, and enable young people to focus on training and employment as they would not have to worry about managing their housing costs in the short to medium term

Services provided by councils must be tailored to the needs of local young people:

1. Local authorities must include a commitment to support young people in their council wide homelessness strategy.
   
   Supporting young people who are homeless or at risk of homelessness should form a key part of the homelessness strategy and staff should be ready and able to offer young person specific solutions and advice.
2. Local authorities must consult young people in the creation of age-appropriate advice and information on preventing and relieving homelessness.
   
   It is crucial that advice and information produced by a local authority is done so in consultation with young people to ensure that it is tailored and accessible to them.
3. The Ministry of Housing, Communities and Local Government should conduct a review of council mediation services to examine the effectiveness and value for money efficacy of different approaches to achieving long-term improved family relationships.
   
   Despite often being the main prevention route for young people at risk of homelessness, the availability of mediation - and approaches to it – vary between local authorities; and the evidence on what works and why is limited.

Local authorities need sufficient resources to fulfil their duties:

1. The Ministry of Housing, Communities and Local Government must provide tools and guidance to ensure uniform data collection across all councils so that the data can be used effectively.
   
   This is essential in order to compare youth homelessness across areas and to determine the scale of the problem nationally and the funding to address it. This means providing local authorities with the infrastructure to implement the data guidance accompanying the HRA, including staff training to collect data accurately.
2. The government must ensure appropriate future funding for the Act is in place when the current settlement ends in March 2020.
   
   Central to delivery of the Act will be the ability of councils to plan and innovate in delivering homelessness prevention and relief. It is essential that councils do not face uncertainty or a funding gap at the end of the initial three-year financial settlement.
3. To boost funding for private rented sector access schemes, HM Treasury should allocate part of the revenue generated by the additional three per cent stamp duty on buy to let properties and second homes.
   
   Analysis suggests that the 2015 stamp duty increase for those purchasing an additional home has generated more than double the expected revenue. By funding PRS access schemes the government could facilitate broader access to the private rented sector.