REPORT OF: HEAD OF HOUSING SERVICES AUTHOR: CAROLINE FISHER TELEPHONE: 01737 276364 E-MAIL: [email protected] TO: EXECUTIVE COMMITTEE DATE: 22 JANUARY 2004 EXECUTIVE MEMBER: COUNCILLOR DR L.R. HACK

AGENDA ITEM NO: 5 KEY DECISION REQUIRED: NO WARD(S) AFFECTED: All

SUBJECT: REVIEW OF THE PILOT RENT, DEPOSIT AND GUARANTEE SCHEME OPERATED IN PARTNERSHIP WITH REDHILL AND REIGATE YMCA. PURPOSE OF THE REPORT: TO INFORM THE EXECUTIVE OF THE PROGRESS OF THE PILOT SCHEME SINCE APRIL 2003 RECOMMENDATION:

1. To continue, in partnership with Redhill and Reigate YMCA to provide a rent, deposit and guarantee scheme for homeless families, and to use Government Grant to augment the scheme.

Executive has authority to determine the above recommendation.

1. Background

1.1 Since 1998, the Redhill and Reigate YMCA has been offering a range of housing services to young people in need, including a rent, deposit and guarantee scheme, targeted at young people under 30 years of age.

1.2 The Homelessness Act 2002 placed a responsibility on the Council to improve its homelessness prevention performance and to reduce homelessness in the Borough. The Act also extended the categories of homeless people for whom the Council must accept a duty to provide accommodation.

1.3 The Government has also introduced targets aimed at reducing bed and breakfast use as temporary accommodation for homeless families, and by 31March 2004, there must be no families with children, or which include a pregnant woman, housed in bed and breakfast except in emergencies, and then for no longer than 6 weeks. Local authorities that continue to place families in bed and breakfast accommodation will be penalised financially.

1.4 The Office of the Deputy Prime Minister (ODPM) made £20,000 available to the Council to assist with the cost of implementing our bed and breakfast reduction action plan during 2003 – 2004. 1.5 In March 2003, the Executive approved the expenditure of the ODPM funding mentioned above, together with £19,940 of Council funds, for a 1 year pilot expansion of the YMCA Next Step rent, deposit and guarantee scheme to include all types of homeless households. This expenditure included one off start up costs of £3,750.

1.6 The target for the first 12 months was for 20 households to be housed in the private sector. The pilot scheme has now been running for 9 months and 34 homeless households have been housed to date, with more and more landlords becoming willing to accept rent and deposit guarantees in lieu of cash deposits and rent in advance.

1.7 A table giving details of the referrals made to the Next Step scheme during the first two quarters of this year is attached at annex 1.

2 Factors for Consideration

2.1 At a time when homeless acceptances have risen by 35% compared with the same period in 2002 – 2003 (i.e. 01/04/2002 – 17/12/2002), the approximate saving to the Council in bed and breakfast charges for the 34 households helped so far amounts to £55,000. (Based on the average cost of £42.50 per night of accommodating a household in bed and breakfast accommodation for 6 weeks). 2.2 The Housing Panel, established by the Overview and Scrutiny Committee, reviewed the rent, deposit and guarantee scheme on 19 November, through their Housing Review Panel, and was impressed by the progress that had been made on this scheme to reduce homelessness and noted the number of referrals, types of client and the number of tenants that had been housed. The Committee also noted that other benefits had been identified through this service which had included emotional, budget management and health support. The Overview and Scrutiny Committee resolved that (i) the first 6 months of operation of the rent, deposit and guarantee scheme, operated in partnership with the Redhill and Reigate YMCA, Scheme be noted as a success; (ii) the Executive be requested to continue, in partnership with Redhill and Reigate YMCA, to provide a rent, deposit and guarantee scheme for homeless families, next year irrespective of whether funding support is provided by the ODPM as the scheme was saving the Council money in Bed and Breakfast accommodation and it was providing the families/individuals concerned with a range of social benefits; and (iii) a further meeting of the Housing Panel be convened in May 2004 to consider the operation of the Scheme after a full 12 months of operation. The YMCA Officer be invited to that meeting to present an assessment of the Scheme and to provide an opportunity for the Panel to ask questions on its detailed operation.

2.3 In addition to the financial benefits to the Council, there are other advantages in housing families via the Next Step scheme:  The family can choose where it wants to live  Temporary accommodation which would otherwise be accommodating “Next Step” families is available for other homeless families  Overall reduction in use of bed and breakfast  Homeless families moving into privately rented accommodation are given on-going support to maintain their tenancies and so reduce the incidence of repeat homelessness  Landlords are encouraged to let properties which otherwise may have remained empty.

2.4 The YMCA are struggling to meet the need to provide support to the 32 households they have so far accommodated, and are seeking additional financial support from the Council to fund a part time worker. Without this extra part time post, the YMCA will be unable to assist any further households this year. They have asked for £3,750 to fund a worker for the final quarter of 2003 – 2004 and an additional £15,000 to fund the worker for 2004 – 2005.

3 Options

3.1 (a)To continue with the scheme in partnership with Redhill and Reigate YMCA after March 2004 keeping to the current level of financial support, whilst recognising that this will limit the help that YMCA can give tenants and landlords, or

(b)To agree to the use of ODPM grant to supplement the scheme and provide funding to the YMCA to enable the employment of an additional part time worker both this year and next.

4 Resource Implications

4.1 The costs of financing the pilot scheme are being met by a combination of ODPM grant and Council savings from other budgets, including the bed and breakfast budget. Costs incurred so far (up to 31 December 2003) are £15,892 from the Council’s revenue budget, including the £3,750 start up costs, and £15,000 Government grant.

4.2The Council has just been advised (December 2003)of the grant awarded by the ODPM for 2004 – 2005, and some of this grant could be used to augment existing funding to continue and further expand the scheme, including the funding of the additional part time worker mentioned in 3.1.

4.3The funding of the additional worker for the final quarter of 2003 – 2004 can be achieved from savings to other grant funded initiatives, which are under spent at present.

4.4 If the additional funds needed for 2003 – 2004 are vired from existing under spending initiatives, and Government grant is utilised in 2004 – 2005 to augment the existing revenue budgets, then there will be no requirement for additional revenue funding to be sought. 5 Consultation

5.1Quarterly monitoring meetings take place between Housing Staff and YMCA staff who are operating the pilot scheme, and two monitoring meetings have been held with the relevant Government Department to assess the Council’s progress in reducing the use of bed and breakfast to house homeless families. The YMCA is keen to continue to operate the scheme in future years. The Government is satisfied with the Council’s progress towards ending the use of bed and breakfast for homeless families. 5.2 As mentioned in 2.2 above, the Overview and Scrutiny Committee reviewed the pilot scheme in November, and a further meeting of the Overview and Scrutiny Housing Panel will consider the scheme after its first 12 months of operation. Officers from the YMCA will be present at this meeting and will be able to answer any queries about the operation of the scheme. 6 Policy Framework

6.1 The operation of a rent, deposit and guarantee scheme is one of the key measures to reduce homelessness and the use of bed and breakfast within the Council’s Homelessness Strategy.

7 Conclusions

7.1 The first 9 months of the scheme have been highly successful. It is likely that as the scheme becomes more widely known to and trusted by private landlords there will be an increasing supply of available privately rented accommodation. This will assist the Council in discharging its obligations towards homeless families and contribute to the prevention of homelessness.

Background Papers: Table of referrals to Next Step at Annex 1

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