Content

10.1

The report sets out the
financial impact of Temporary Nightly Paid Accommodation –
Bed and Breakfast (B + B) on Hostel Subsidy Loss.
 
The report explains the
escalating pressure on the budget, the background and context, the
mitigations in place and the further priority actions that are
recommended to address these.

 

 

10.2

RESOLVED
UNANIMOUSLY: That the Housing Policy
Committee:-
 

1.    
notes the issues raised in the report;
 

2.    
notes the mitigating actions that are already in
place that will mitigate the financial pressures attributable to
Nightly Paid Temporary Accommodation (TA) - B+B;
 

3.    
considers the recommended 4 Priority Actions that
will have most impact on reducing the use of B+B and mitigating
against the Hostel Subsidy Loss set out at section 2 of the
report;
 

4.    
endorses the development of the business cases for
the 3 Temporary Accommodation Sites; and
 

5.    
requests that an update on the financial impact of
Temporary Nightly Paid Accommodation – Bed and Breakfast on
Hostel Subsidy Loss be added to the Committees’ Work
Programme for future review.

 

 

10.3

Reasons for Decision

 

 

10.3.1

The issues relating to Hostel
Subsidy Loss must be addressed because it is unsustainable for this
financial pressure to continue to grow.

 

 

10.3.2

Prioritising actions that will
have the most impact on reducing the use of B+B will make the most
difference to the financial position as demand for services
continue to increase.

 

 

10.3.3

Tackling both demand by
increasing successful homelessness prevention and supply by
providing more cost-effective TA as quickly as possible must happen
in tandem.

 

 

10.3.4

There will always be people who
do need the safety net of TA and therefore it is critical to have a
sufficient supply that is suitable to meet the statutory duties and
cost effective.

 

 

10.4

Alternatives Considered and Rejected

 

 

10.4.1

Continuing with the current
arrangements and not develop alternatives for TA. This has been
discounted because unchecked the use of B+Bs could reach more than
1000 placements by 2028.

 

 

10.4.2

Allocating 240 more units of
dispersed SCC properties for adult households to bring the use near
to zero of B+B. This has been discounted because of the negative
impact on rehousing and the community impact of instability created
by short term lets.

 

 

10.4.3

Allocating a proportion of the
Homelessness Prevention Grant or General Fund to off-set the
pressure from 2024/25. This has been discounted as to release any
funding would mean reducing the number of staff delivering the
statutory homelessness service or overspending other budgets. This
would lead to more and longer placements in B+Bs. The level of
grant from 2025/26 is not yet known. Even if the whole of the
Housing General Fund and Grant were used for this purpose it would
not cover the pressure going forward.

 

 

10.4.4

Reducing the number of
properties available to people with waiting time from 1 in 4
properties to 1 in 10. Due to the very low number of properties
available this would almost end lettings to people with waiting
time only. This has been discounted as changes to the Allocations
Policy will be fully considered in the review in 2024/25. This will
be a key decision and statutory consultation will be required prior
to presenting for approval.

 

 

10.4.5

Seek to commission 700 units of
accommodation from registered providers. This has been discounted
at this stage as we need to test the market and over reliance on
other providers may still result in SCC needing to provide TA for
customers RPs will not support. Current intelligence indicates that
RPs will not have capacity to fulfil this number of
units.