The Salvation Army has warned that government changes to the housing benefit system could force it to close hostels for homeless people.
From 2019, the government plans to fund the nation’s supported accommodation system through housing benefit (or Universal Credit) only up to capped local rates.
And the charity now says the reduced sums will mean a desperate struggle ahead to keep hostels open, leaving thousands of homeless people “at risk” of having to sleep on the streets.
A new report commissioned by the charity revealed 84% of residents at The Salvation Army’s “Lifehouse” hostels would be unable to pay for bed spaces under the benefit cap, rising to 91% of residents by 2020/21.
The new system would place the financial viability of the vast majority of our supported housing services at immediate risk
Mitch Menagh, territorial director of The Salvation Army’s Homelessness Services Unit, conceded the outlook appeared grim.
“We found evidence that the new system would place the financial viability of the vast majority of our supported housing services at immediate risk, jeopardising the homes of thousands of vulnerable people,” he said.