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Strategy to Meet the Temporary Accommodation Needs of Homeless People

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Strategy to Meet the Temporary Accommodation Needs of Homeless People THIS REPORT RELATES STIRLING COUNCIL TO ITEM 28 ON THE AGENDA STIRLING COUNCIL ENVIRONMENT SERVICES 25 JUNE 2009 NOT EXEMPT STRATEGY TO MEET THE TEMPORARY ACCOMMODATION NEEDS OF HOMELESS PEOPLE 1 SUMMARY 1.1 At its 11 December 2008 meeting the Council instructed the Director of Environment to bring forward further proposals for the development and funding of the Homelessness Service, including temporary accommodation. This report seeks the approval of a strategy to meet the temporary accommodation needs of homeless people. 1.2 The changes in homelessness legislation since the introduction of the Housing (Scotland) Act 2001 have brought about an increase in the number of homeless applicants to whom the Council has a duty to provide temporary and permanent accommodation. 1.3 The Homelessness Service has taken a number of steps over the past three years to increase the availability of directly provided temporary accommodation and to reduce the costs to the Council by avoiding the use of bed and breakfast. However, as a result of a significant increase in the numbers of applicants in temporary accommodation over the last 18 months the level of use of bed and breakfast, and the costs associated with it have increased significantly. 1.4 The core objective of the strategy set out in this report is to increase the provision of leased or directly owned accommodation with a view to eliminating the routine use of bed and breakfast by the end of March 2012. The strategy also addresses the need to improve the level of support and supervision provided to homeless applicants, to minimise any risk of disruption to local communities through anti social behaviour and to develop specific supported provision for those clients with the highest support needs. 1.5 The Service has identified a need for a business plan for the homelessness activity. The proposal is that the service moves to a full cost recovery approach for the accommodation it uses. 1.6 The strategy includes a proposal to purchase a number of properties for use as temporary accommodation using prudential borrowing and to increase the use of dispersed lets to meet the urgent need to reduce Bed and Breakfast accommodation. An acquisitions strategy including proposals to ensure that the Council’s actions support the local housing market by freeing up purchase chains will be presented to Council after the summer. N:\DEMSUPP\NEWDECISIONS\SCOUNCIL\REPORTS\SC20090625ITEM28HOMELESSPEOPLE.DOC 2 RECOMMENDATIONS 2.1 To approve the actions set out at paragraphs 3.15 to 3.18, aimed at increasing the supply of directly provided temporary accommodation. 2.2 To approve the move to a full cost recovery approach for accommodation used to meet the housing needs of homeless people. 2.3 To note that moving to a full cost recovery model will result in an end to Hostel Support Grant payments from the Scottish Government by 2010 and to agree that whilst these payments continue they should be used to support the provision of temporary accommodation. 2.4 To instruct the Head of Housing to explore the options for acquiring property for use as temporary accommodation and bring forward a further report on the feasibility and funding for this option, including information on how such an approach could support the housing market. 3 CONSIDERATIONS Background 3.1 The implementation of the Housing (Scotland) Act 2003; the Homelessness etc. (Scotland) Act 2003 and the Homeless Persons (Unsuitable Accommodation) (Scotland) Order 2004 have extended the range of duties that the Council has in respect of applicants who apply as homeless. 3.2 In summary these are to provide interim accommodation for an applicant where there is reason to believe they are homeless. This duty continues until the Council has completed the investigation of the case and discharged the duty owed to the household. For an applicant who is assessed as homeless, in priority need, unintentionally homeless and with a local connection to Stirling, the temporary accommodation duty will continue until the Council has made two reasonable offers of permanent accommodation. 3.3 This process currently takes an average of 231 days. Applicants who do not have a right to a permanent housing through the homelessness legislation are entitled to accommodation for a reasonable period to allow them time to find somewhere to stay. They are also entitled to free advice and assistance to help them to secure accommodation. 3.4 The abolition of the priority need test by 31 December 2012, with an interim target to assess 81% of homeless people as being in priority need by 31 March 2009, has increased the number of applicants that the Council has a duty to provide both temporary and permanent accommodation. The supply and level of demand for temporary accommodation 3.5 During 2008 the Housing Service working with BT&T carried out a full and detailed analysis of the demand for and cost of temporary accommodation and the profile of homeless applicants. This work was supplemented with additional analysis and consultation with service users during the first quarter of 2009. Five copies of the report of this work have been placed in the members lounge. 3.6 The table below sets out a snapshot of the number of clients in temporary accommodation by type as at 31 March 2009. This represents a typical snapshot of the current level of demand and use of the range of accommodation. The total has risen by just over 35% since the same date last year when 187 clients were in temporary accommodation. Table 1: Temporary accommodation by type and usage 31 March 2009 Dispersed Tenancies Leased Hostels B&B Total Number of clients 55 45 66 88 254 Voids 4 3 0 7 3.7 The cost of each type of temporary accommodation including loan charges, voids, refurbishment and repairs and the support and supervision required is set out in the table below. Bed and breakfast (B&B) accommodation is provided through an existing supply contract that covers a very limited number of places from proprietors who were prepared to tender for placements. The great majority of B&B placements are “spot purchased” at higher rates though it should be noted that the recent capping of the cost of this sort of provision has significantly reduced cost. The impact of these changes is discussed below. Table 2: cost of temporary accommodation 2007/08 (Excludes Hostel Support Grant) B&B B&B Non- Dispersed Tendered tendered Lets Leased Hostels Unit Cost per £18,877 £29,983 £12,308 £15,009 £15,379 annum Unit Cost per £296 £398 £66 £124 £117 week 3.8 It is clear from these figures that dispersed lets from the Council’s own stock are significantly better value than any other form of provision but that leased properties can also offer significant savings to the Council. 3.9 The current level of use of B&B establishments presents the Council and its partners with two significant issues. Firstly, the unsuitability of B&B as an accommodation option for homeless households and secondly, the high cost to the public purse. 3.10 Communities Scotland’s Regulation and Inspection Report on the Council’s Homelessness Service (2005) stated, “the Council’s provision of temporary accommodation alternatives to bed & breakfast is inadequate”. Progress was made to increase the number of units of temporary accommodation and there was a reduction in the use of B&B. However, since June 2007 the escalating number of homeless applicants, the current economic climate and the increased time that applicants spend in the homelessness system has put the Council’s portfolio of temporary accommodation under growing pressure. 3.11 Following a significant overspend on the cost of temporary accommodation in 2008/09 the Council allocated an additional £670,000 to fund the cost of increased demand for temporary accommodation. However, if action is not taken to increase the availability of alternatives to B&B in the short term it is likely that the increase in demand for temporary accommodation will result in either a further significant overspend or a failure on the Council’s part to fully meet its statutory duties to homeless applicants. Recent actions to reduce the cost of temporary accommodation 3.12 Over the past year the Housing Service has taken a number of actions intended to both reduce costs and increase the availability of alternatives to B&B. These include:- • proposals to convert the former school at Holy Trinity to provide 10 units of hostel accommodation. A contract for this work has now been let and the accommodation will be available for use by the end of December 2009; • launching a private sector leasing scheme in February 2009 with a view to increasing the number of properties leased from private landlords by 50 up to 31 March 2010 and a further 50 properties in the following year; • negotiating lower rates with B&B operators. This has resulted in a reduction in the cost of an average B&B placement from over £50 per night to £40. As a result the cost for the majority of non tendered B&B has dropped from £350 to £280 per week; • agreeing the provision of new dispersed lets from registered social landlords (RSLs). Three local RSLs have agreed to match the level of dispersed lets provided within the Council stock of 0.5%. This will secure and additional 3 dispersed lets during 2009/10; and • discussions are underway with Clackmannanshire and Falkirk Councils about the joint procurement of a number of services including B&B and furniture removal and storage. 3.13 These actions should add over 60 new units of directly provided accommodation over the next 12 months.
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