Grant for Shelter and Citizens Advice-run scheme cut to £3 million. Ministers have slashed funding for a ‘vital’ charity-run national homelessness advice scheme for the third consecutive year.
According to Inside Housing:
Last week the Communities and Local Government department released the bidding prospectus for the National Homelessness Advice Service, offering £3 million for 2015/16.
This equates to a more than 3 per cent cut to the 2014/15 funding, and nearly a 12 per cent cut over the three years since funding was announced.
The service is run by Shelter and Citizens Advice and funded by the CLG.
In 2012, then housing minister Grant Shapps announced £3.4 million-a-year funding for the scheme as part of a flagship homelessness programme.
He said the ‘cash boost’ was ‘vital to ensuring that when people ask for help, the practical advice and expertise is there’.
The cut comes amid increased strain on council homelessness services, which are facing a £20 billion shortfall due to reduced government funds according to the Local Government Association. It also follows the CLG’s decision to axe six homelessness advisors in March last year.
Although the number of homeless families in England fell slightly, by 5 per cent, between December 2012 and December 2013, during the year to June 2013 London boroughs more than doubled the number of homeless households they placed outside the capital to 789.
A study by homelessness charity Crisis and the Joseph Rowntree Foundation in December showed rough sleeping rose by 13 per cent in London in 2012/13, blaming the increase on front line service reductions following government cuts.
A spokesperson for Shelter said it was looking ‘at the options for future funding’ but would not confirm whether it would bid for the latest contract. She added: ‘While we look at options for future funding it is business as usual.’
Last year the charity posted a £5.2 million operating deficit.
A CLG spokesperson said: ‘The level of grant being offered to run the future national homelessness advice service is a reflection that the service will no longer be required to support applications through the mortgage rescue scheme.
‘The government has maintained funding of £470 million to ensure anyone facing the prospect of homelessness has the help they need, and continues to help homeowners struggling with their mortgage through the extended support for mortgage interest scheme, which helps over 200,000 homeowners a year to stay in their homes.’
In numbers: National Homelessness Advice Service
83%
of council and voluntary agency users found National Homelessness Advice Service training effective in their day-to-day work
90%
of users found the NHAS service good or excellent
90%
of voluntary agencies stated the NHAS website provides the resources they need
75%
of users reported no problems with accessing NHAS training and said it met their needs