The cost of living crisis could force homeless in hostels back onto the streets

The government had previously planned to end rough sleeping by 2024, a promise that now looks to be derailed.

A large number of homeless people living in hostels and supported homes in England could be forced back onto the streets as accommodations prepare to close beds as a result of soaring bills, charities have said.

A fifth of homeless charities have been forced into reducing services in response to the rising cost of living pressures, while almost half say their frontline services will be at risk over the coming months – according to a survey by Homeless Link.

They say that the combination of the rise in energy bills and underfunded council contracts threaten the stability of hundreds of homelessness charities and could heavily impact the government’s plans to end sleeping rough by 2024. 

Rick Henderson, Homeless Link’s chief executive, said in a statement that the survey data implied there could be a surge in the number of people sleeping rough. He urged the government to ensure funding for homelessness services rises in correlation with inflation and providers continue to receive additional funding for energy bills. He said: “Due to local government funding pressures, the vast majority of homelessness services are having to scrape by on budgets set when inflation was a fraction of what it is now. Meanwhile, providing accommodation is energy intensive, with services unable to pass on the cost of higher energy bills to people they support.”

He continued, “The government made a commitment to end rough sleeping in England by 2024. But inaction now will lead to hundreds of vital services across the country shutting down, leaving the people they support with nowhere to turn but sleeping rough or other types of homelessness like sofa surfing or being placed in expensive emergency accommodation.”

Despite a 141% increase in rough sleeping over the past decade, the homelessness sector has contracted significantly, with 26% fewer beds in England since 2010, according to Homeless Link. There has also been a fall in the number of day centres providing food, warmth and support for homeless people.

The Homeless Link survey was carried out between September and November 2022 and 356 of its 900 members responded.

WriterChris Saunders