Local authorities in the capital could lose almost a third of their homelessness funding, according to a new analysis by the cross-party group, London Councils.
In response to the government’s consultation on proposed changes to the Homelessness Prevention Grant, London Councils said that two of the options put forward would result in reduced resources for local authorities from 2023.
The analysis found that under the government’s proposals, local authorities in London could see their homelessness funding reduced by 32%, which is equivalent to losing £50m.
Joanne Drew, co-chair of the London Housing Directors’ Group said: “There is a serious concern across the capital’s housing and homelessness sectors about potential reductions to London’s funding at a time when demand for services has never been higher.
“We must have adequate funding for London’s hard-pressed homelessness services. Reducing London’s share of the Homelessness Prevention Grant risks making the problem even worse, leading to higher costs on councils and the wider public sector.”
London accounts for around 60% of England’s homeless households in temporary accommodation.
London Councils highlighted that the loss in finance is due to “flaws in the proposals”, which include the use of general population figures as a basis for deciding homelessness funding levels and a lack of appropriate measures to reflect housing affordability.
Cllr Darren Rodwell, London Councils’ executive member for regeneration, housing and planning said: “Although we agree with the government’s ambition of simplifying how homelessness services are funded, it makes no sense to reduce London’s overall level of resources.
“There definitely needs to be a re-think on these particular proposals, and we’re keen to work with ministers on finding a better way forward.”
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