BOROUGH OF POOLE PEOPLE OVERVIEW AND SCRUTINY COMMITTEE (HEALTH AND SOCIAL CARE) 22 nd JANUARY 2018 Agenda Item 7 HOMELESSNESS REDUCTION ACT, TRAILBLAZER SERVICE & TEMPORARY ACCOMMODATION PROPOSALS 1. PURPOSE PART OF THE PUBLISHED FORWARD PLAN: YES STATUS: 1.1 To present Members with an update of the legislative changes of the Homelessness Reduction Act and its implications to the Council and outline the approach taken to address this through the Homeless Trailblazer service and alternative Temporary Accommodation options. 2. RECOMMENDATION 2.1 It is recommended that the Committee: 2.1.1 note the changes in legislation and scrutinise the approach and proposed steps to address this through a review of temporary accommodation. 2.1.2 support the development of a Preventing Homelessness Strategy to address wider homeless duties and temporary accommodation demands. 3. BACKGROUND 3.1 The Homelessness Reduction Bill received Royal Assent on 27 th April 2017 and is now an Act. The date of enactment will be 3 rd April 2018. 3.2 The Homelessness Reduction Act (abbreviated in this report to the HRAct) amends Part 7 of the Housing Act 1996. The Act comes during a period of rising homelessness and strengthens focus on single homelessness whom existing statutory provisions provide limited assistance. 3.3 Appendix One illustrates the recent rise in homelessness in Poole from households making applications to the Council. This increase is broadly in line with the national trend. 3.4 Like many authorities Poole has seen an increase in the use of temporary accommodation in recent years due to a range of factors associated to rising homelessness. Appendix two displays the household increases. The proportion of families to vulnerable single homeless accommodated is around a 80:20 ratio in each year. 3.5 The chart below illustrates the different types of temporary housing used by the Council to meet its interim housing duties.
Profile of Households in Temporary Accommodation - December 2017 4 Private Sector Leased (self contained) 29% 19 28 Bed & Breakfast (shared) 22% 25 22 Temporary council accommodation (self contained) 26% Housing Association (self contained) 19% Refuge 4% 3.6 Temporary accommodation is used by the Council to as an interim solution to fulfil its statutory duties to homeless households until more permanent housing becomes available. The increased cost and demand of private rented housing has made it more difficult to find suitable temporary and permanent homes. 3.7 The increased use of Bed & Breakfast accommodation is expensive, of differing quality and impacts negatively on those occupying it. Appendix three illustrates the increase use. Of concern is the increased length of stay in B&Bs of families in B&B to 6 weeks. B&B is the most expensive type of temporary accommodation the Council uses, on average each household accommodated costs 14,352 per annum. In 2017/18 the Councils average number of households in B&B is forecasted to be 22. 3.8 It is unlawful for Councils to place families in B&B for longer than 6 weeks. 4. THE NEW PROVISIONS 4.1 There are 13 clauses in the Act that amend many of the existing duties and bring in a substantial number of new duties (Appendix four), a summary is provided below. 4.1.1 Required to treat households as threatened with homelessness at 56 days before they are likely to become homeless, an increase from the current 28 days. 4.1.2 Required to provide enhanced information and advice on homelessness, tailored to the specific needs of those groups who are at a greater risk of homelessness.
4.1.3 Required to assess each household who are homeless or threatened with homelessness. Prepare a personalised plan setting out what the household and the authority will do to tackle their homelessness. 4.1.4 Required, for up to 56 days, to take reasonable steps to help all eligible households threatened with homelessness maintain their accommodation or find new accommodation. Households will be required to co-operate with the support provided. 4.1.5 Required, for up to 56 days, to take reasonable steps to help all eligible homeless households secure accommodation. Households in priority need will be provided with interim accommodation during this period. Households will be required to co-operate with the support provided. 4.1.6 Required to carry out enhanced checks on accommodation they secure in the private rented sector for households in priority need. 4.1.7 Households will be able to request reviews of decisions made under the prevention and relief duties. 4.1.8 The act requires other public authority services to notify the housing authority of households threatened with homelessness. 4.2 Without consideration of the changes, Government forecasts homelessness will increase on average 9% in each of the next 3 years. With the new duties, it is anticipated Homelessness applications are likely to at least double. 4.3 The Housing Options service will be required to deliver a significant change to the way it assesses and supports the needs of residents threatened with homelessness. 4.4 The projected rise in homelessness demands using recent footfall data analysis and forecasted increases from government means the service will need to plan for additional temporary accommodation, staffing resources and reviewing the operational processes for dealing with new cases. 4.5 Staffing resources to manage this in 2017/18 2018/19 can be funded from additional Government grants for tackling homelessness. 4.6 Additional training and awareness of the implications will be required for both Members and Officers across the Council. 5 HOMELESSNESS PREVENTION & THE TRAILBLAZER SERVICE 5.1 It is widely accepted that early intervention activity and prevention work targeted where households may be homeless or at risk of homelessness saves costs on expensive temporary accommodation and reduces the disruption and health and wellbeing impact on households who become homeless. 5.2 Appendix five shows Homelessness Prevention activity in Poole is good, ranked in the top quartile of LA s in England. The Housing Options team also achieved recognition and Silver Standard Accreditation due to the quality and effectiveness of prevention activities. However, despite hundreds of households
being supported to prevent or relieve homelessness, recent years have seen a reduction in performance. This has mainly been due to the private rented sector becoming the largest reason for homelessness (end of tenancy) coupled with households difficulty in accessing more affordable private rented housing in an ever competitive market. 5.3 In 2016, the Council, in partnership with Bournemouth Borough Council, secured a Department of Communities & Local Government grant of 450 000 to develop a new prevention support service, driving a shift in resources to local and community early/preventative support. This service works upstream of traditional housing options, focusing specifically on key partnerships with the private rented sector, Jobcentre Plus, employers, communities (including faith groups) health and social care. 5.4 The service has now been fully operational for 3 months and has developed some promising successes, over half of households supported to stay at home through, landlord negotiation, support accessing money or debt advice and ensuring advice and information is available at the earliest point. The service focuses on ensuring help is available at the right times to avoid the need for eviction notices. i.e. at more significant life changing events such as redundancy / change in household income, relationship breakdown, birth of a new baby, disability or illness, leaving institutions and bereavement. 5.5 The trailblazer service will provide a bi-annual performance report and is leading a joint initiative to promote the service to private landlords across the Poole & Bournemouth conurbation. 6 TEMPORARY ACCOMMODATION PROPOSALS 6.1 The new homelessness duties will see increased demand on temporary accommodation (TA). Supply and demand modelling based on current temporary accommodation suggests the gap between demand from households in temporary accommodation and the supply of accommodation to address this needs could increase by 48 households in 2019/2020. Forecasted Demand & Supply 2017/2018 2018/2019 2019/2020 Net Year End TA 102 138 150 Households Total TA Supply 77 113 125 Projected Gap (No. 25 25 25 in B&B / refuge) Forecasted GF Budget Variance 88,000 213,000 243,000 6.2 The forecasted net year end position for households in all types of temporary housing are displayed in the above table. The total supply of temporary accommodation available to council is currently 77 units, with an additional 25 households forecasted to be in B&B / refuge. This increases in 2018/19 by 26% (reflecting Homelessness Reduction Act burdens) and 9% (Governments forecast on general homelessness increase). The increase of 9% has been applied for 2019/20.
6.3 To sustain the same number of households in B&B / refuge in each of the next 2 years, the Council needs to increase the supply of alternative temporary housing, by 36 in 2018/19 and a further 12 in 2019/20. The forecasted budget increase is based largely upon the Bed & Breakfast use and procurement of additional temporary housing. 6.4 A number of alternative temporary accommodation models should be considered to provide the greatest opportunity to avoid the need for B&B placements and offer greater efficiency in temporary housing provision. The higher the number of alternative temporary housing units provided, the greater the opportunity to create savings from B&B expenditure. 6.5 As well as B&B, all other forms of non-council managed temporary housing create a financial burden to the Council, however to a lesser extent than B&B and is all self contained. 6.6 It is proposed to undertake a review of the current arrangements and alternative options are considered, including; 6.6.1 Review of current temporary accommodation lease arrangements 6.6.2 Re-procurement of units providing inefficiency (with private and registered providers) 6.6.3 Council off-street purchases (PHP, Housing Company) 6.6.4 Extended Nomination Arrangements with Private Rented Sector Landlords 6.6.5 Modular / Container builds 6.6.6 Extension of use of permanent Council stock as temporary accommodation 6.6.7 Sheltered Housing Re-designation options 6.7 Ensuring the council has a strategic approach to Temporary Accommodation procurement will only be effective if coupled with a Preventing Homelessness Strategy. Recent Department of Communities & Local Government Code of Guidance and case law supports requirement to publish the Council s approach to these important issues. 6.8 In particular the elements of meeting Homelessness demand through settled housing supply with a refocusing of some key prevention areas: 6.8.1 Universal prevention ensuring residents have the right advice and information about their housing options via a range of service including non-housing services 6.8.2 Targeted early intervention & prevention focusing on those at higher risk from becoming homeless 6.8.3 Crisis prevention relief helping people quickly if they do become homeless 6.8.4 Preventing repeat homelessness supporting people to recover from their experience 6.8.5 Sustainable housing options to enable people to find & retain a settled home 6.9 The current priorities for addressing Homelessness can be found within Priority 4 Preventing homelessness and rough sleeping and improving health and wellbeing through housing of the Councils Housing Strategy. It is proposed to review these objectives and develop a new Preventing Homelessness Strategy.
7 FINANCIAL IMPLICATIONS 7.1 There are two new sources of funding for preventing and tackling homelessness: 7.1.1 The Flexible Homelessness Support Grant is ring-fenced for two years. The Government has not stated whether it will continue after 2018/19 or if it does continue, whether it will continue to be ring-fenced. 7.1.2 Housing Reduction Act New Burdens funding has also been awarded for three years. 7.2 These two new sources of funding are expected to fund the additional staffing resources required for the HRAct and the loss of temporary accommodation management fee, as announced in the Government s 2015 Autumn statement. 7.3 MTFP pressures of 88,000 in 2017/18, 213,000 in 2018/19, with insufficient grant funding available from 2019/20 the pressure rises to 243,000 in 2019/20. 7.4 In order to mitigate the financial pressure that the Council faces due to rising homeless demand, HRAct implications and supply volatility and net cost of temporary accommodation. The MTFP pressures which went to Cabinet in December 2017 outlined those stated at point 7.3. 7.5 Some of the Councils stock and hostel are already used to mitigate the cost wherever possible, but it is critical that alternative and more cost effective provision to B&B is considered. As outlined the private rented sector becomes part of the Council s response to this growing problem. 7.6 A range of temporary accommodation provisions to best meet household need and shared financial risk maybe most appropriate. 8 LEGAL IMPLICATIONS 8.1 The government is revising the existing statutory Homelessness code of guidance. This detail will provide updated guidance to local authorities on how they should exercise their homelessness functions and apply the legislation in practice. 8.2 The Council needs to ensure appropriate expertise and resources will be available to manage future legal challenges on untested points of law. 8.3 Local authorities have a statutory duty to provide accommodation in their own area, so far as reasonably practicable under section 208(1) Housing Act 1996. The accommodation must be suitable to the needs of the homeless person and each member of the household. 8.4 The option for more leased accommodation may result in procurement implications and that various procurement options will be considered and the necessary approval sought as appropriate to the Councils financial regulations.
9 EQUALITIES IMPLICATIONS 9.1 Any suggested change to the temporary accommodation profile will need to ensure an Equalities Impact Assessment is completed. 9.2 Ensuring that self contained, suitable, local and affordable temporary accommodation options are available with support, when needed, will have positive impacts on all groups who need to access them. Whereas retaining the use of B&B as the only option for households who become homeless, is likely to have a negative impact upon a range of aspects of their health and wellbeing. 9.3 Placement in any type of temporary accommodation remains disruptive to all households and more so to those with protected characteristics. Effective pathways into settled housing as soon as possible remain key to mitigating the impact for those groups who require additional support to manage this change when homeless / threatened with homelessness. 10 SUMMARY 10.1 The HRAct will bring in significant changes to the way the Council s homelessness service is administered. A joint operational implementation plan is in place with Bournemouth Borough Council with awareness sessions planned for February and March 2018. 10.2 Government grants have enabled the Council to prepare and consider what will be appropriate to meet the additional duties. However, this will need to be reviewed very closely to assess the impact of the change and effectiveness of approach. 10.3 The Council needs to focus on strengthening its strategic approach to addressing increasing homelessness demands through the development of a Preventing Homelessness Strategy to ensure the Council can respond flexibility and robustly to residents demand. Report of: Jan Thurgood, Strategic Director, People Theme Tel: 01202 663203 Contact Officers: Ben Tomlin, Housing Services Manager, Housing & Community Services. Tel: 01202 633414 Phil Hornsby, Head of Commissioning & Improvement, People Services/Interim Head of Housing & Community Services Tel: 01202 261030 Background Paper: Medium Term Financial Plan Update Cabinet Report December 2017
Number of Applications Received/Acceptances 450 Appendix One Homelessness Applications Received & Accepted 2013-2018 (forecasted) Applications Received Applications Accepted 400 350 403 300 326 340 250 263 200 219 150 100 106 124 135 153 50 60 0 2013/14 2014/15 2015/16 2016/17 2017/18
Number of Households Accommodated Appendix 2 120 Numbers of Households in Temporary Accommodation at the end of Each Financial Year (forecast) 100 102 80 84 90 76 78 74 60 40 20 0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Numbers in B&B Appendix Three 30 Numbers of Households in B&B at the end of Each Financial Year 25 24 20 15 18 15 10 5 6 4 4 0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Section 1: Meaning of threatened with homelessness Appendix Four- Homelessness Reduction Act - The new Sections Section 1 sets out the circumstances whereby households are threatened with homelessness, and therefore when they should be offered support from local authorities to try and prevent them from becoming homeless. It extends the period during which someone might qualify as being threatened with homelessness from 28 days to 56 days. Aim - to clarify and harmonise the approach taken to households who require assistance due to a private sector tenancy coming to an end Section 2: Duty to provide advisory services Section 2 extends the existing duty on local authorities to provide free homelessness advice and information to any person in their local authority area. This should include advice and information on preventing homelessness, securing accommodation when homeless, the rights of homeless people or those threatened with homelessness, the help that is available from the local authority or others and how to access that help. It also requires advice services to be designed with certain vulnerable groups in mind. This includes care leavers, victims of domestic abuse, people released from prison or youth detention accommodation, former members of the armed forces, people leaving hospital and those suffering from a mental illness or impairment. Aim - to ensure free advice and information in order to develop solutions to problems and maximise homelessness prevention opportunities Section 3: Duty to assess all eligible applicants cases and agree a plan Section 3 sets out the process that Councils must undertake with all applicants, regardless of family make-up, to agree a personalised housing plan. This will require local authorities to carry out an assessment in all cases where an eligible applicant is homeless, or at risk of becoming homeless. Following this assessment the Council must work with the person who has applied for help to agree the actions to be taken by both parties to ensure the person has, and is able to, retain suitable accommodation.
Aim - to provide for a more personalised approach to advice and assistance and tailored support that will prove more effective in preventing and relieving homelessness Section 4: Duty in cases of threatened homelessness Section 4 sets out a new duty on councils to take reasonable steps to prevent homelessness for any individual, who is at risk of homelessness. This means either assisting them to stay in their current accommodation, or helping them to find a new place to live. Section 4 also sets out the circumstances under which an authority s duty to prevent homelessness may be brought to an end by the service of a written notice. This includes the local authority being satisfied that suitable accommodation has been secured where there is a reasonable prospect of that accommodation being retained for six months. Aim - to support LAs to intervene at an earlier point with the aim of preventing homelessness for all households Section 5: Duties owed to those who are homeless Section 5 places a new duty on Councils to take reasonable steps to relieve homelessness for all eligible households. This involves taking reasonable steps to help the applicant to secure suitable accommodation. The duty lasts for up to 56 days. When applicants become homeless, Councils must provide interim accommodation for those who are or those whom it believes to be in priority need. It remains unlawful for Councils to use Bed & Breakfast for families for longer than 42 days. Aim - to support the LA and applicant to work together to find a solution tailored to the applicant s circumstances, irrespective of whether the applicant is in priority need Section 6: Duties to help to secure accommodation Section 6 interacts with the new prevention and relief duties outlined in sections 4 and 5. It provides Councils with the flexibility to assist in resolving people s housing issues by providing support and advice to households, who would then be responsible for securing their own accommodation. Aim - Local authorities are able to make more efficient use of their resources
Section 7: Deliberate and unreasonable refusal to co-operate: duty upon giving of notice Section 7 sets out the actions a Council can take if an applicant who is homeless, or threatened with homelessness, deliberately and unreasonably refuses to take any steps set out in the personalised plan. It also sets out the procedure and duties which apply if an applicant who is homeless refuses, at the relief stage, a suitable final accommodation offer. Aim - To create an environment where the applicant who is homeless or threatened with homelessness will undertake proactive work with the local authority in order to prevent or tackle their homelessness Section 8: Local connection of a care leaver Section 8 makes it easier for care leavers to show they have a local connection with both the area of the local authority responsible for them and the area in which they lived while in care, if that was different. Aim - To make it easier for care leavers to demonstrate a local connection to the area where they would feel at home and would want to access assistance Section 9: Reviews Section 9 extends an applicant s right to request a review of their local authority s homelessness decisions, so they apply to a number of decisions that a local authority might make when discharging the new prevention and relief duties. Applicants can currently request a review at 9 decisions points, this is extended to possible review decisions at 39 different decision points. Section 10: Duty of public authority to refer cases to local housing authority Section 10 requires public authorities, specified in regulations, to notify a local authority of service users they think may be homeless or at risk of becoming homeless. The public authority will need to gain the consent of the individual before referring them.
Aim - to ensure that a person s housing situation is considered whenever they come into contact with any wider public service Section 11: Codes of practice Section 11 enables the Secretary of State to produce mandatory codes of practice dealing with local authorities functions in relation to homelessness or homelessness prevention. It also allows future codes to apply narrowly to specific Councils. Aim - to ensure that all local authorities will deliver the same level of high quality support to any household who is homeless or threatened with homelessness Section 12: Suitability of private rented sector accommodation Under section 12 local authorities must ensure certain suitability requirements are satisfied when they secure accommodation for vulnerable households in the private rented sector. Aim - to improve standards in the private rented sector
Number of Preventions 900 Appendix 5 Total cases of Prevention and Relief 800 700 726 779 600 666 500 578 400 300 462 410 200 100 0 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18