Why we need a long term plan for housing to tackle poverty

Ensuring people have a home they can afford to pay for, power and heat is key to tackling poverty and addressing inequalities which impact social mobility. Decent and affordable homes should be a foundation for life, but shortages and unequal access mean too many people are forced to live in overpriced, insecure and poor-quality housing, struggling to make ends meet.

Poverty levels are rising. 22 per cent of people in England are now classed as living in poverty – 25 per cent in London (see Trust for London). That’s more than one in every five people. The latest research by the Trussell Trust shows that half of working families in receipt of universal credit ran out of food in the past month. And this is only set to get worse as winter approaches.

High housing costs are pushing many people into this poverty. A recent report from Home Builders Federation shows that around one in five (20 per cent) of people are living in households spending more than 40 per cent of their income on housing costs, the second highest proportion in Europe, and 12 percentage points more than the EU average of 8 per cent. CIH’s cost of living briefings and recently published housing manifesto reflect the extent of the crisis and the need for urgent action, highlighting the need to introduce both short and long term reforms.

As housing providers or partner organisations we see first-hand the impact that the broken housing and social security system has on people. We unpacked this a little in the session that we hosted at Labour conference last week, hearing from Grand Union Housing Group, Places for People, National Federation of ALMOs and MRI (who lead on the Resident Voice Index) about just how challenging things have become for many. As one said, “In the past people had places to go but support has been cut so much that people have very few options. There's no more money for hardship finds. Basic UC does not cover costs”.

NFA’s ‘On the Edge’ report reveals that 85 per cent of their members are seeing increased rent arrears. Grand Union’s ‘Investing in the future – reforming the UK’s welfare system’ report brings to life some of the personal impact felt. Places for People shared that one third of their customers cannot afford basic living costs. Latest data from the Resident Voice Index shows that many social housing tenants are, in their words, "surviving but not living".

It’s clear that a significant increase in the number of social and (truly) affordable homes is critical to tackling poverty. But we also need a social security system which supports a vibrant economy and society, with urgent action required to support those on the lowest incomes. We want people to thrive, not just survive. It was good to hear from Mike Amesbury MP, Labour’s shadow lead for homelessness, that Labour are looking at this and committed to meaningful action. In the shadow Minister’s words, “social security should be just that - with dignity at its heart”.

As set out in our event last week, we’re calling on the next government to commit to:

• Work with housing associations and local authorities to significantly increase the number of social and affordable homes delivered each year
• Introduce an Essentials Guarantee - ensuring benefit rates provide enough to afford the basics
• Restore local housing allowance rates to cover the cheapest third of rents – making private rents affordable for those on the lowest incomes
• Introduce a social tariff for the energy market - to provide targeted support for those in greatest need.

In the run up to Autumn Statement on 22 November we’ll continue to press Government for action on these issues. (You can read more in our budget submission.) As one of the panel said, “social housing providers want to be a force for good but can't keep filling the gaps where the state should be”.

#ThrivingNotSurviving