Call in: - Approval of the council’s revised Homelessness Accommodation Placement Policy, Overview & Scrutiny Committee - Monday, 2nd September, 2024 6.00 p.m.

September 2, 2024 View on council website Watch video of meeting
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Summary

The Committee voted to refer the Mayor in Cabinet's decision on the revised Homelessness Accommodation Placement Policy back to the Cabinet for reconsideration. The principal concern of the Committee was that the Council had not sufficiently explored all of the options available to it to increase the supply of temporary accommodation in the borough.

The Revised Homeless Accommodation Placement Policy

The Committee was asked to consider a Call In of the Mayor in Cabinet's decision of 10 July 2024 to approve the revised Homeless Accommodation Placement Policy. The Call In was proposed by Councillors Mark Francis, Sirajul Islam, Asma Begum, Shahaveer Hussain and Mohammed Chowdhury.

Councillor Mark Francis opened the discussion, arguing that the Mayor's decision was a terrible policy that had been implemented prematurely. In particular, the removal of the 90 minute journey time restriction on placements of statutorily homeless families in temporary accommodation was unnecessary in advance of the Government's Comprehensive Spending Review on 30 October 2024, which may provide new funding sources to local councils. The report also failed to acknowledge the detrimental effect on vulnerable families of being placed far from the support networks of their family and friends, and of the Council's poor track record in ensuring that temporary accommodation out of borough is of a good standard. Councillor Francis cited the example of a vulnerable young mother with two young children, currently placed in an unsuitable one-bedroom flat in Medway. The removal of the 90 minute journey time restriction would make it possible for the family to be moved even further away from Tower Hamlets.

Councillor Francis also highlighted the lack of consultation with homeless families about the new policy, and urged the Mayor to commission a survey of homeless households in Tower Hamlets to properly understand the impact of placements away from the borough.

In response, Councillor Kabir Ahmed, the Cabinet Member for Regeneration, Inclusive Development and Housing Building, argued that the changes to the policy were necessary in the face of the unprecedented housing crisis. The demand for temporary accommodation is increasing across London, and Tower Hamlets is no exception. This is partly due to the increased availability of private rented sector accommodation following the lifting of the ban on 'no fault evictions'1.

This is the same struggle that was faced by administration after administration, not only in this local authority, but currently in every single local authority in the country.

Councillor Ahmed acknowledged that the cost of temporary accommodation is a significant burden on the Council's finances. Tower Hamlets currently faces a 'housing benefit subsidy loss'2 of £12.7 million each year due to the gap between the rents charged for temporary accommodation and the amount of money that the Government gives to the Council to cover those rents.

Local authorities like Newham are facing potential section 114 territory, which is essentially going into administration and bankruptcy as a result of the bill associated with temporary accommodation.

Councillor Ahmed argued that the Council cannot afford to wait for the Comprehensive Spending Review to take action on temporary accommodation, and that expanding the areas where temporary accommodation can be procured will allow the Council to secure good quality homes for residents at a cheaper rate.

Councillor Ahmed also stated that no Tower Hamlets MP has been working with the Council to lobby the Government for additional funding for temporary accommodation. He invited the borough's three MPs to meet with him to discuss housing issues in the borough.

...I'd like to take this opportunity to invite all three MPs to specifically come and discuss housing issues and how central government can support this council in these challenging situations, particularly around finance, particularly around issues of good financial management, because on the one hand we do operate with the heart, and on the other hand we have a balanced budget that we must deliver.

Councillor Ahmed also said that the Council will always endeavor to place households within Tower Hamlets, and that the new placement policy simply makes it clear where the Council will look for accommodation if this is not possible.

Our first priority will always be to locate people in Tower Hamlets.

Karen Swift, the Council's Director of Housing, added that the new placement policy uses zones to define the areas where temporary accommodation can be procured. The policy also includes a number of safeguards to ensure that vulnerable families are not placed far away from the borough.

Ms Swift said that the Council is following best practice from other London boroughs in setting out these zones. For example, Newham, Waltham Forest, Camden and Southwark councils all use a zoned approach to their temporary accommodation placements.

So the first zone is Tower Hamlets, and then it's London, then it's out of London, then it's further afield. A lot of other boroughs just say in or out of London. So we're taking the best practice from all of the other placement policies and putting it there so residents can see that we're transparent about where it is that we're going to look for accommodation.

Ms Swift also said that the Council has a good track record of procuring temporary accommodation in areas that are suitable for the needs of residents. The Council currently has accommodation in Slough, Lewisham, Ilford and Romford.

And Abel's, the rest of Abel's work is around Ilford and Romford. So we, we don't think that this policy is going to move us any, any further away than what we're already procuring. It's just making it much clearer and transparent because people tend to focus on the zones in the placement policy, but there's all sorts of other really good improvements.

In the debate that followed, several members of the Committee expressed concerns about the impact of the new policy on vulnerable families. In particular, they were concerned that the removal of the 90 minute journey time restriction would make it more difficult for families to access support networks, schools, and healthcare. They also expressed concerns about the quality of temporary accommodation outside of the borough, and the lack of consultation with homeless families about the new policy.

Members of the Committee also expressed concerns about the lack of detail in the policy about how the Council would ensure that temporary accommodation procured outside of the borough was suitable for the needs of residents. For example, Councillor Rachael Saunders asked how the Council would ensure that disabled residents would be placed in accommodation that was accessible to their needs, and highlighted concerns raised by disability campaigner George Bleakley about the availability of wheelchair accessible accommodation in the borough. Mr Bleakley had provided a video and written submission to the Committee ahead of the meeting.

Councillor Saunders also pointed out that while the report sets a limit of £382 per week for bed and breakfast accommodation, there were nearly 3000 properties available to rent in the borough for £950 per week on property website Zoopla.

So I looked on Zoopla this afternoon because I looked at the report that was issued by you and it said we're paying something like 382 pounds per week, I guess per case on bed and breakfast accommodation. I thought surely that's an affordable amount of money to be spending within Tower Hamlets on flats and lo and behold there were nearly 3,000 properties on Zoopla for 950 pounds per week.

Councillor Saunders asked why the Council could not secure these properties to house homeless residents, arguing that the Council should be a more reputable tenant to private landlords than private renters. Councillor Ahmed argued in response that many private landlords are reluctant to rent their properties to homeless families, often citing concerns about damage to their property or difficulties in evicting tenants if they fall into rent arrears. Councillor Ahmed also argued that the Council is committed to procuring temporary accommodation within Tower Hamlets, but that this is not always possible due to the high cost of rents in the borough.

So I'll give you a real-term example. So I was speaking to a housing operator not that long ago and the example is I don't want homeless people because they're going to nick things. I don't want homeless people because they're going to break things. I don't want children in the homes because they're going to damage my property. Those who are in temporary accommodation are going to ruin, I've just spent £50,000 doing the house up. They're going to ruin it. I won't get that money back.

Councillor Sirajul Islam expressed concerns about the impact of the policy on Muslim families, arguing that placing families far away from the borough would make it more difficult for them to access halal food and places of worship.

Now if you look at a Muslim family with children being housed, someone like Buckinghamshire or somewhere like Hertfordshire, you have to think about not just a school, because you can find a school place somewhere, but what about places of religious worship? Will somebody find a mosque locally somewhere? What about access to halal food, butchers, et cetera? There are certain places that you will find very difficult to access those kind of services.

Councillor Islam also questioned how the Council would measure the diversity of communities outside of London, to ensure that they are suitable for residents from a wide range of ethnic and religious backgrounds. In response, Councillor Ahmed argued that the Council would consider the needs of residents when procuring temporary accommodation, and would aim to place residents in areas with existing diverse communities.

So we will try to procure properties. Is it Penton House? Yeah. So an example is Penton House. It's in Luton. Okay. So there are Muslim families who are placed within that site as well as other families as well. So there is access to halal food. There is access to places of worship.

Several members of the Committee also questioned why the Council was not waiting to see the outcome of the Government's Comprehensive Spending Review before implementing the new policy.

In response, Councillor Ahmed argued that the Council cannot afford to wait for the outcome of the Spending Review, and that the revised policy simply formalises existing practice.

Despite assurances from Councillor Ahmed and the officers that the Council would take all reasonable steps to ensure that vulnerable families were not placed far from the borough, the Committee remained unconvinced. Several members of the Committee felt that the Council had not sufficiently demonstrated that it had explored all of the options available to it to increase the supply of temporary accommodation within the borough. For example, Councillor James King asked why the Council was not procuring more private rented sector accommodation within Tower Hamlets, particularly given that the council is only using 58% of its temporary accommodation budget.

As a second time you mentioned Peterborough as an example of somewhere the council could send homeless service to. So how far away is too far away? What is the limit that the council should be sending people away from their social networks in terms of miles? You suggested twice that 100 miles is too far away.

Councillor King also questioned how the Council could justify sending families as far away as Peterborough, given that the journey time from Peterborough to Tower Hamlets by public transport exceeds the Council's own 90 minute limit. Councillor Ahmed argued that the Council is not planning to send families to Peterborough, and that the mention of Peterborough was simply to illustrate the point that the current 90 minute limit is not a meaningful restriction.

However, Councillor King remained unconvinced, arguing that the lack of a clear limit on the distance that families can be placed from the borough is unacceptable.

But that's what I'm trying to get at. Where does Zone D end? Because twice you've implied 100 miles is too far away from people for their social networks.

The Committee also expressed concern that the policy does not explicitly state that families will not be placed in accommodation outside of London if they have children in exam years or strong local connections.

Following the debate, the Committee voted 6 to 2 to refer the Mayor in Cabinet's decision back to the Cabinet for reconsideration, with a request for a written response to the Committee's concerns.

It is not known what action the Cabinet will take in response to the Committee's request for reconsideration. However, the Committee's decision highlights the strength of feeling among councillors about the impact of the Council's temporary accommodation policy on vulnerable families in the borough.


  1. A 'no fault eviction' is an eviction where a landlord does not have to give a reason for evicting their tenant. This type of eviction was banned in England in 2019 to protect tenants from being evicted unfairly. The ban was lifted in June 2022, which has made it easier for landlords to evict tenants, leading to an increase in homelessness. 

  2. A 'housing benefit subsidy loss' is the difference between the rent that a council pays for a temporary accommodation property, and the amount of money that the government gives to the council in housing benefit to cover that rent.