Under the Homelessness Reduction Act 2017, everyone in England approaching their local authority for help because they are homeless or at risk of homelessness is entitled to an assessment. Unfortunately, Centrepoint’s Databank research has found that this is not happening in practice, with only 67 percent of the young people who approached their local authority in England in the financial year 2023/24 receiving an assessment.
For the second time, Centrepoint commissioned WPI Economics to calculate the amount of additional funding local authorities would have needed to meet their obligations under the HRA to assess and provide a relevant duty where necessary to all young people who present to homelessness support services in 2023/24.
The analysis shows that English councils would need to see an additional £400 million in funding from central government to ensure that all young people who report to homelessness support services receive an assessment and support if required.
This represents a 14 percent increase in current spending on homelessness support services for all age groups. In 2022/23, the additional funding needed was £332 million, highlighting a 20 percent increase in costs between the two periods.
This increase is largely driven by increasing costs associated with homelessness support as well as an increase in the number of young people reaching out for help.
Recommendations
The Government should provide additional funding to local authorities in England to ensure that all young people who report to homelessness support services receive an assessment and support if required.
Under the baseline scenario in 2023/24, we estimate that local authorities in England required an additional allocation of £400 million. However, our modelling also shows that significantly more funding may be required if a greater number of the young people presenting to local authorities have higher levels of need – meaning that their homelessness cannot be prevented or relieved and they require the Main Housing Duty.
To address this issue, the Government should develop a funding allocation for local authorities to meet their obligations to young people under the HRA, encouraging local authorities to not divert this funding to other services. The Government should ensure that this funding supports councils in meeting the specific needs of young people, many of whom experience homelessness and present differently compared to other cohorts of people experiencing homelessness.
To support local authorities with this, the Government should also work with young people and the youth homelessness sector to write and implement a youth-specific chapter in the Homelessness Code of Guidance.
This chapter should clarify the obligations of local authorities at the presentation, initial interview and assessment stages to ensure that all local authorities are aware of what is and is not acceptable practice. In doing this, the chapter should delineate a) the factors a local authority must consider and b) what constitutes a realistic burden of proof when the Homelessness Code of Guidance states that a local authority must only have “reason to believe” a person is homeless or at risk to get an assessment.
By securing dedicated funding and introducing specific guidance for young people, the Government can ensure that local authorities provide consistent, high-quality support for young people facing homelessness.