City council receives government cash boost to tackle homelessness

Liverpool Council is to receive almost £200,000 from the government to protect rough sleepers from cold weather this winter. As part of an emergency £10m fund launched by Angela Rayner, deputy Prime Minister, the city council is to receive cash to ensure rough sleepers have access to a safe and warm bed. Earlier this year, it was revealed how demand on homeless services across Liverpool has surged by more than a third in the last calendar year as spending over five years has passed unprecedented levels.

Last year, across the country 155 people died sleeping rough. A cabinet report last month on financial performance outlined an overspend forecast of almost £12m before any mitigation is taken on rough sleeping.

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The government confirmed in last week’s Budget, an additional £233m will go towards tackling all forms of homelessness. The Deputy Prime Minister chaired the first meeting of a cross-government group on taking actions to keep people off the streets.

Last month, stark forecasts by Liverpool Council said it had received a 38% increase in demand on 2023/24 levels and an assumption is that there will be increased placements during 2024/25 at a rate in line with the past two years. In the last five years, spending on homelessness has increased by 12,000% - when the budget stood at just £200k per year.

It was revealed in September how the council is considering reopening a homeless hub this winter as the number of rough sleepers across the city continues to increase. A cabinet report set out how an improvement plan has been put in place to contain demand for temporary and Bed & Breakfast emergency accommodation and to ensure suitable alternative temporary and permanent accommodation can be commissioned to meet needs but remains a “significant financial risk.”

Analysis found cost-of-living pressures and lack of available private rented and social housing is driving demand and an increased use of temporary and emergency accommodation to meet the council’s statutory duty. Hotel and B&B availability, competing with tourism demand is also increasing the cost of supply. Without mitigation the additional budget pressure could be £11.7m.

Confirming the funding for Liverpool, Ms Rayner said: “Anyone forced to sleep rough on our streets represents a complete failure of the broken system we've inherited. It's a national disgrace, and we can’t keep sticking plasters on it.

“We are approaching the harshest months of the year which is why we are taking immediate action to reach anyone sleeping rough and help them off the streets this winter. “Bringing together Ministers across government is a crucial step to tackle this crisis at its root and ensure everyone has access to the basic right of safe and secure housing.”