The Corporate Resources and Economy Scrutiny Committee met to discuss the council's efforts to support residents towards financial resilience, with a particular focus on homelessness, temporary accommodation, and individuals with No Recourse to Public Funds (NRPF). The committee also reviewed corporate performance and budget monitoring reports.

Supporting Residents to Financial Resilience

A significant portion of the meeting was dedicated to a scrutiny review focused on supporting Islington's residents towards financial resilience. This included evidence presented on temporary accommodation and homelessness, as well as the challenges faced by individuals with No Recourse to Public Funds (NRPF).

Homelessness and Temporary Accommodation: The committee received data indicating a decrease in households owed a homelessness duty compared to the previous year, both nationally and locally. However, Islington still has a higher rate of households assessed for homelessness and those owed a prevention or relief duty compared to London and its nearest neighbours. While the national increase in households in temporary accommodation was noted, Islington's rate per 1,000 households remained below London and its neighbours. The primary reason for households approaching the council for assistance was that friends or family were no longer able to accommodate them. The percentage of homeless households due to domestic abuse rose to 16% in Q1 2025/26. Islington Council has been commended for preventing over 900 homeless households from becoming homeless in the last 12 months, placing it in the top 5% of councils nationally. However, it was highlighted that homelessness is largely driven by national government policies, and there are no private rented properties available at the government's Local Housing Allowance rates in Islington. Proposed improvements include ensuring Local Housing Allowance rates reflect local markets with annual uplifts, enabling the council to purchase ex-Right to Buy properties for local temporary accommodation, and increasing homelessness funding from central government.

No Recourse to Public Funds (NRPF): The council is actively supporting residents with NRPF through its NRPF Team, which works with Adult and Children's Social Care. This team provides accommodation and financial support to approximately 70 households annually, costing around £1.2 million. The majority of these costs are associated with private rented sector accommodation. In the financial year 2024-2025, the council supported 72 households with accommodation and subsistence, costing £1,146,000. Referral rates and demand for social care support are increasing, partly due to asylum seekers and residents lawfully present but with NRPF conditions. The report highlighted that Islington's NRPF Team achieves better outcomes than the national average when closing cases, with 76% of adult cases and 81% of family households receiving immigration permission granting recourse to public funds. The NRPF Network, hosted by Islington, advocates for government action, including specific grant funding for NRPF support, clearer statutory guidance, and better resourcing of the Home Office NRPF Connect Team. The council also supports asylum seekers, with its Asylum Services Team working to meet the needs of residents in Home Office accommodation and advocating for policy changes. Islington's Borough of Sanctuary initiative and Islington Welcomes Strategy aim to create a more welcoming and inclusive borough, with £510,000 allocated in 2025 to fund projects supporting sanctuary seekers.

Corporate Performance Q1 2024-25

The committee received the Quarter 1 Corporate Performance Report, which indicated that most performance indicators were on target or exceeded expectations. However, challenges were noted in areas such as persistent absence in schools, the percentage of care leavers in education, employment, or training, and resident experience of council services, particularly the percentage of calls answered and contacts resolved at the first point of contact. Targets for increasing secure cycle parking facilities and green space were also below target, though plans are in place to address these. Members raised concerns about the 4% of council homes not meeting the decent homes standard and the increasing cost of disrepair cases.

Revenue Budget Monitoring, Capital Budget Monitoring and Medium Term Financial Strategy

The committee reviewed the Quarter 1 Budget Monitoring Report, Capital Monitoring Report, and Medium Term Financial Strategy update. A net £1.5 million year-end overspend was projected, primarily due to SEND transport, income shortfalls, and temporary accommodation pressures. Mitigations include property buybacks, preventative work, route optimisation for SEND transport, and improved debt collection. Savings associated with locking parks were no longer proceeding, and some automation and property consolidation savings were delayed. The council faces a £75 million net budget gap over the next five years due to inflation, demand growth, and the government's Fair Funding Review. The Housing Revenue Account (HRA) is under pressure due to ageing stock and increased costs for regulatory compliance. The committee expressed concern about the increasing cost of rent for council tenants, with officers explaining that housing repair costs are met from the HRA, funded through rents.

Forward Plan of Key Decisions and Scrutiny Review Tracker

The committee noted the Forward Plan of Key Decisions and the Scrutiny Review Tracker.

Verbal Update from Committee Chairs and Work Plan

Committee chairs provided brief updates, and the committee reviewed its Work Plan and Action Sheet. The Chair of the Children and Young People Scrutiny Committee indicated that an update on government SEND reforms would be reported to a future meeting.

The meeting concluded with the committee noting the progress made in achieving the five missions set out in Islington Together 2030 and the Islington Together Delivery Plan 2024-2026.