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Homelessness: despair and confusion amid the night shelter funding crisis Homelessness: despair and confusion amid the night shelter funding crisis
(about 1 hour later)
There's been a reprieve-of sorts for the Narrowgate emergency night shelter, which, as I reported last week, had closed after its local council cut off housing benefit payments to the vulnerable homeless men and women who stayed there.There's been a reprieve-of sorts for the Narrowgate emergency night shelter, which, as I reported last week, had closed after its local council cut off housing benefit payments to the vulnerable homeless men and women who stayed there.
After the media coverage, a wealthy individual came forward with a donation enabling the Salford-based shelter to re-open for three nights a week for the next four months, meaning that the 28 rough sleepers who use it each night will not be totally abandoned, at least not for the summer months.After the media coverage, a wealthy individual came forward with a donation enabling the Salford-based shelter to re-open for three nights a week for the next four months, meaning that the 28 rough sleepers who use it each night will not be totally abandoned, at least not for the summer months.
According to Narrowgate manager Phil Brown, the donor, who had recently come into a large sum of money, had been moved by the stories to approach the shelter asking if they could help. According to Brown:According to Narrowgate manager Phil Brown, the donor, who had recently come into a large sum of money, had been moved by the stories to approach the shelter asking if they could help. According to Brown:
They offered a sum of money initially that would have kept us open for one night. When we told them this, they offered us 'x' amount, and said "what can you do with that?"
They offered a sum of money initially that would have kept us open for one night. When we told them this, they offered us 'x' amount, and said "what can you do with that?"
It's good news of a temporary sort, says Brown. Five shelter workers lost their jobs, and perhaps one will be re-employed for the period. It will give Narrowgate some breathing space to try and attract funding from other sources. But ultimately, he admits, relying on the kindness of strangers is a precarious and probably unsustainable way to fund a shelter.It's good news of a temporary sort, says Brown. Five shelter workers lost their jobs, and perhaps one will be re-employed for the period. It will give Narrowgate some breathing space to try and attract funding from other sources. But ultimately, he admits, relying on the kindness of strangers is a precarious and probably unsustainable way to fund a shelter.
Narrowgate's good fortune is far from a sign that the crisis is over for emergency night shelters who are dependent on housing benefit payments for at least part of their income. A number of local authorities across the UK are actively considering the so-called Anglesey judgement, which rules that a temporary night shelter does not constitute a "dwelling" and therefore its residents are not eligible for housing benefit.Narrowgate's good fortune is far from a sign that the crisis is over for emergency night shelters who are dependent on housing benefit payments for at least part of their income. A number of local authorities across the UK are actively considering the so-called Anglesey judgement, which rules that a temporary night shelter does not constitute a "dwelling" and therefore its residents are not eligible for housing benefit.
I spoke to another emergency night shelter which now teeters on the brink of closure amid the confusion over whether it should continue to be funded through housing benefit. The Wales-based shelter, which has put a roof over the heads of eight street homeless people each night for the past 10 years, is still open but as a result of the ruling is losing £1,200 a week (about 40% of its income), and as its manager told me:I spoke to another emergency night shelter which now teeters on the brink of closure amid the confusion over whether it should continue to be funded through housing benefit. The Wales-based shelter, which has put a roof over the heads of eight street homeless people each night for the past 10 years, is still open but as a result of the ruling is losing £1,200 a week (about 40% of its income), and as its manager told me:
We cannot do that for much longer
We cannot do that for much longer
Negotiations with its local authority about possible solutions are still very much ongoing, he said. They had looked at ways of changing the way the shelter operated to comply with the criteria of a "dwelling" as defined by the judge in the Anglesey case. To do so, however, would be self defeating, on the grounds that itNegotiations with its local authority about possible solutions are still very much ongoing, he said. They had looked at ways of changing the way the shelter operated to comply with the criteria of a "dwelling" as defined by the judge in the Anglesey case. To do so, however, would be self defeating, on the grounds that it
stops being a night shelter
stops being a night shelter
At least one council - Blackpool - has interpreted the ruling to mean it can continue to fund its local night shelter. The Welsh shelter I spoke to said guidance from the Department for Work and Pensions clarifying how councils should respond was vital to clarify the confusion around the issue.At least one council - Blackpool - has interpreted the ruling to mean it can continue to fund its local night shelter. The Welsh shelter I spoke to said guidance from the Department for Work and Pensions clarifying how councils should respond was vital to clarify the confusion around the issue.
The DWP confirmed to me that there are no plans to issue guidance. It stood by its statement to me issued last week:The DWP confirmed to me that there are no plans to issue guidance. It stood by its statement to me issued last week:
A spokesperson for the Department for Work and Pensions said it believed the judgment did not set a precedent, and said that how councils interpreted the ruling was a "local decision".
A spokesperson for the Department for Work and Pensions said it believed the judgment did not set a precedent, and said that how councils interpreted the ruling was a "local decision".
As usual, the government outsources the financial risks and hard decisions to local authorities. But where will it stand on the shelter funding issue when universal credit comes in?As usual, the government outsources the financial risks and hard decisions to local authorities. But where will it stand on the shelter funding issue when universal credit comes in?
For a typically insightful discussion of the Anglesey ruling, it is worth reading this post by specialist housing law blogger Nearly Legal. He concludes:For a typically insightful discussion of the Anglesey ruling, it is worth reading this post by specialist housing law blogger Nearly Legal. He concludes:
This is a very bad situation. It is unlikely that Councils will divert funds from other areas (Preventing Homelessness, for example) to replace the loss of H[ousing] B[enefit] income for the shelters. However, the DWP [Department for Work and Pensions] appears either to have not figured out that there is a problem, or is remarkably blasé about it. I suspect that the issue would take amendment to the regulations to resolve, as DWP guidance couldn't really over-rule a binding U[pper]T[ribunal] decision. But there is no sign of any action, let alone rapid action from the DWP.
This is a very bad situation. It is unlikely that Councils will divert funds from other areas (Preventing Homelessness, for example) to replace the loss of H[ousing] B[enefit] income for the shelters. However, the DWP [Department for Work and Pensions] appears either to have not figured out that there is a problem, or is remarkably blasé about it. I suspect that the issue would take amendment to the regulations to resolve, as DWP guidance couldn't really over-rule a binding U[pper]T[ribunal] decision. But there is no sign of any action, let alone rapid action from the DWP.
Meanwhile, two petitions have been launched to try and persuade the DWP to exempt night shelters form the ruling, by campaigners 38 degrees and the homeless charity Emmaus.Meanwhile, two petitions have been launched to try and persuade the DWP to exempt night shelters form the ruling, by campaigners 38 degrees and the homeless charity Emmaus.
It is clear that the DWP does not consider housing benefit to be an appropriate source of funding for emergency night shelters (indeed, it supported the legal appeal by Anglesey council that led to the current ruling) though it will not say explicitly. It believes that local authorities should fund homelessness services. The danger, as As Nearly Legal pointed out above, it that it is optimistic to assume councils will happily take on this potential new funding burden.It is clear that the DWP does not consider housing benefit to be an appropriate source of funding for emergency night shelters (indeed, it supported the legal appeal by Anglesey council that led to the current ruling) though it will not say explicitly. It believes that local authorities should fund homelessness services. The danger, as As Nearly Legal pointed out above, it that it is optimistic to assume councils will happily take on this potential new funding burden.
It is plausible that the government ultimately considers the funding of these shelters to be a matter for civil society (or "big society"), rather than the state. A number of night shelters are indeed run by charities, often faith-based, which do not rely on state funding of any kind. Such efforts are to be applauded: but the Narrowgate experience gives us a flavour of the limitations of this kind of voluntary support.It is plausible that the government ultimately considers the funding of these shelters to be a matter for civil society (or "big society"), rather than the state. A number of night shelters are indeed run by charities, often faith-based, which do not rely on state funding of any kind. Such efforts are to be applauded: but the Narrowgate experience gives us a flavour of the limitations of this kind of voluntary support.
Abandoning state help will not provide any kind of immediate solution to the needs of those street homeless people who would suffer from the closure of the north Wales shelter (and others elsewhere). If not met these needs will become critical during the winter months.Abandoning state help will not provide any kind of immediate solution to the needs of those street homeless people who would suffer from the closure of the north Wales shelter (and others elsewhere). If not met these needs will become critical during the winter months.
Its manager told me:Its manager told me:
Unless someone else was willing to step in and operate it and fund it themselves I don't not know what will happen... If we do not find a way forward the pressures are going to be on the most vulnerable
Unless someone else was willing to step in and operate it and fund it themselves I don't not know what will happen... If we do not find a way forward the pressures are going to be on the most vulnerable
• Thanks to Emmaus charity for alerting me to this update (Wed 22, 11.40am): on Monday 20 May Labour MP Julie Hilling asked the following question in the Commons:
A recent judgment said that homeless people using night shelters are not eligible for any housing benefit payments. Given that night shelters will not be able to continue without an income from their service users, what action is being taken to address this problem?
The work and pensions secretary Iain Duncan Smith replied:
We are looking at this issue with my noble friend Lord Freud and my right hon. Friends. I will definitely write to the hon. Lady about the outcome.