Best ways to break the cycle of homelessness
The cycle of homelessness is getting more and more difficult to break. It is estimated that by 2024 more than 66,000 people will look to local authorities for extra support and financial aid to help them overcome their housing problems. Local authorities are currently struggling with the increasing demand leading to many people being left in unsuitable temporary accommodation.
So what is the homelessness cycle? What are the causes and why is it so difficult to break out?
At The Access Group we are aware of all the current housing problems individuals are facing including housing quality, affordability and housing shortages, and we know how difficult it can be to prevent more and more people falling into the homelessness cycle, as well as how hard it is to break away from it.
This article will review all the current causes of homelessness and the impacts these causes have on individuals, families, and local authorities. This article will then evaluate what the government have been putting into place and explore the best ways to break the cycle of homelessness.
What is the homelessness cycle?
Often most people assume homelessness means rough sleeping, but it is a lot more complex than that.
Rough sleeping is one of the most visible forms of homelessness but there are also a wide range of situations that are also described as homelessness. Other types of homelessness include temporary accommodation, hidden homelessness, and being statutory homeless.
Homelessness can be caused by numerous different factors but once someone is homeless it can be increasingly difficult to break out of it.
One of the main reasons for this is that in order for individuals to claim for any support they need a fixed term address. This can make it increasingly difficult to break out of the homelessness cycle and allow individuals to get back on their feet.
This then makes the process longer and leaves many stuck in the cycle of seeking support and being rejected until eventually they get the support they need to begin to have a stable lifestyle again.
What are the causes of the homelessness cycle?
There are a variety of reasons why an individual or household may become homeless. The events of the past few years, including the pandemic and the cost-of-living crisis have exerbated these even further.
1. Cost of living Crisis
One of the biggest causes of homelessness currently is the cost of living crisis. Times are uncertain for many. Employment is becoming less and less stable for some industries and the rising fuel costs and low incomes are making it harder and harder for people to pay their rent, mortgages and bills.
The NHS Confederation estimate that due to the rising fuel costs, low incomes, and the amount of energy inefficient homes, half of British households will be pushed into fuel poverty. This will make it even harder to maintain a household and lead to more families and individuals becoming homeless.
By 2024, due to the cost of living crisis, it is estimated that 9,000 people will be placed into unsuitable temporary accommodation because there will be no other choices.
Peabody, a housing association based in London, reported that 80% of people they surveyed were restricting their use of heating to inadequate levels, 42% were spending less on food to inadequate levels and 41% were having to do both.
2. Housing Shortages
The shortage of suitable and affordable housing is another cause for homelessness in the UK. Many families and individuals struggle to find a house that best suits their needs and budgets this leads to many relying on local authorities to find them temporary accommodation or relying heavily on housing benefits.
Housing shortages makes this even more difficult for local authorities to find enough suitable and affordable long-term temporary accommodation.
The shortage of housing within social and affordable housing has also led to house prices and rents increasing rapidly across the country. Currently over 1.1 million households are on social housing waiting lists across the UK with overcrowding due to these shortages increasing more and more each year.
3. Lack of Support Services
Another cause of homelessness is due to communities having limited support services. A community with limited resources and funding may have inefficient availability and accessibility to provide a wider variety of support services including financial advice and support, mental health services, and substance abuse treatment to name a few.
Having limited resources reduces the opportunities and services homeless individuals within a community can receive to help them escape homelessness, break the cycle, and address any additional underlying issues.
4. Personal Circumstances
A lot of personal circumstances can lead to individuals becoming homeless. Some examples include eviction, being made redundant, relationship breakdown, health emergencies and being a victim of domestic abuse.
Without sufficient support services in place individuals can continue to struggle financially or miss mortgage and rent payments leading them to becoming homeless. Support services are crucial when personal events like these to take place to ensure this doesn’t happen and to prevent an increase in homelessness as much as possible.
5. Discharge from institutions
Another key cause for homelessness across the UK is the lack of or limited transitional support when an individual leaves an institution. This could be leaving the army, prison, or a care home.
In fact it is estimated that one third of care leavers experience homelessness within the first two years of leaving care and 25% of the homelessness population are estimated to have been in care at some point in their life.
Without appropriate planning and transitional support therefore, individuals may face challenges in securing housing and reintegrating back into the community.
It is clear there are a variety of causes of homelessness and due to limited budgets, resources, and time, local authorities struggle to ensure all the appropriate preventative measures are in place and that they are fully accessible to everyone to prevent homelessness in the first place.
What have the government done to help break the cycle of homelessness?
As the number of individuals and households becoming homeless increases the government have tried to put a variety of things in place to help individuals, households, and local communities.
The Homelessness Prevention Grant for example has helped many vulnerable people in England who are homeless or at risk of losing their home.
In December 2022 The Homelessness Prevention Grant received a £654 million funding boost to help councils target support to those who need it. This also included vulnerable families and people at risk of sleeping rough. It was announced that £24 million would be used to help provide temporary accommodation for victims of domestic abuse and their children.
In 2018 The Homelessness Reduction Act was one of the biggest changes to the rights of homeless people in England for 15 years. This law helps improve the help and support that local councils need to provide people who are homeless or at risk of being homeless.
It is local councils and local authorities’ responsibility therefore to provide the support needed to help individuals out of the cycle of homelessness as well as prevent others into it. Since 2018 and the implementation of the Homelessness Reduction Act, 500,000 households have had their homelessness successfully prevented or relieved.
Despite this achievement it isn’t always that easy. Councils can use the money from grants flexibly due to them having the best knowledge of their local area. But this can lead to some cohorts of people or more vulnerable people at risk of their needs not being met or supported, leaving many in unsuitable temporary accommodation for extremely long periods of time. This in turn, can have long term impacts on someone’s mental and physical health.
Why is it difficult to break the cycle of homelessness?
Like already discussed it can be difficult to break the cycle of homelessness for many reasons. One of the biggest reasons is individuals lacking a permanent address as this prevents individuals from opening back accounts and securing permanent employment, some of the other reasons include:
- Homeless Bank Accounts
- Housing Market Pressures
- Complex needs and support services
- Lack of preventative measures
- Stigma and Discrimination
1. Homeless Bank Accounts
One of the biggest challenges individuals can face when trying to break out of the cycle of homelessness is being able to open a bank account.
By not having a bank account people can not apply for the benefits they may need to help them get out of financial distress, obtain employment, or pay rent.
Homeless individuals may also struggle to pass the specific identification requirements needed to prevent fraud and comply with their regulations. So even if they find support and organisations help them provide an address they may lack the necessary identification documents needed such as photo ID to get through the next stage.
Homeless individuals can also find it difficult to open a bank account because they may have limited financial resources making it difficult to meet the minimum balance required for some types of bank accounts.
It is increasingly difficult therefore for individuals to break out of the homeless cycle independently and often they need to rely on charities or local authorities for help and guidance. Therefore without the correct support in place this can make the process even harder and leave homeless individuals stuck in the cycle for longer.
2. Housing Market Pressures
Like already discussed the lack of affordable and high quality housing is a major contributing factor for why it is difficult to break people out of the homelessness cycle.
What makes this even more difficult is that homelessness is not evenly distributed across the UK. Because of this some more deprived areas will have more homelessness than others and a higher demand for support services to help individuals. The higher rates of homelessness in some areas increases the risk of not having sufficient resources to help address homelessness issues effectively.
Therefore in order to break the cycle of homelessness consistently across the country regional differences have to be considered and analysed so neighbouring councils can help each other make better use of their resources and budgets instead of leaving more and more people homeless without the help they need for longer periods of time.
3. Complex needs and support services
Many people experiencing homelessness can often face multiple and complex needs these could include mental health issues, substance abuse, unemployment, or additional trauma.
Often these issues can be route causes for homelessness and by not addressing them individuals are at a higher risk of returning into the cycle of homelessness.
It is crucial therefore that local councils not only help individuals out of the homelessness cycle but also continue to support them so they never fall back into temporary accommodation or other means of housing support again.
In order for this to happen councils must be able to have comprehensive services that can support a variety of needs with specialist support when needed. It can be difficult to both understand the care and support needs of a homeless community, as well as coordinate the services needed as this can take time, money, and resources.
Local authorities need to be strategic in the ways they help homeless people in their community to allow everyone access to housing support whenever they need it.
4. Lack of preventative measures
Similar to what has been discussed already, one of the biggest risks is that once you have been homeless before you are at a higher risk of becoming homeless again. Without sufficient preventative measures in place it can be virtually impossible for more vulnerable individuals to avoid becoming homeless.
If local councils only focus on the immediate needs of those experiencing homelessness without addressing underlying causes this can impact how effectively they fully break away from the homelessness cycle altogether.
It is essential that a comprehensive approach to combatting homelessness in a local community is used so it not only concentrates on immediate impacts, aid, and support, but on long term support too and ways to prevent more homelessness in the future. Introducing early intervention programs targeted for at risk populations is just one way local authorities could approach this.
5. Stigma and Discrimination
One of the final reasons why it is difficult to break the homelessness cycle is that there is often a lot of stigma, judgement, and discrimination towards people that fall homeless.
There are often stereotypes that individuals have fallen homeless because they are lazy, have spent all their money on drugs, gambling, and alcohol, and therefore it is their fault they are homeless and they shouldn’t be helped.
These negative stereotypes make it increasingly difficult for individuals who want to take back control of their lives as it can limit their access to employment, housing, and specific support services. It also can impact how easily they can reintegrate back into society again and how quickly they achieve a better quality of life.
It clear there are a variety of reasons that make it difficult to break the homelessness cycle whether you are trying to break out of the cycle independently or whether you seek help from your local authority. It is crucial local authorities have support in place for anyone who needs it so individuals feel comfortable and know they will get they help they need to get back on their feet without any judgement.
For this to happen it is crucial that a holistic approach which combines better housing provision, robust support services, and better preventative measures altogether to ensure that all communities can tackle these challenges better to make better progress in breaking the homelessness cycle.
The best ways to break the homelessness cycle
In order to overcome the challenges in breaking the homelessness cycle it is important to be aware of what strategies work and what strategies don’t so your local authority does not repeat mistakes.
This next section will evaluate a variety of strategies which different stakeholders have used to make it easier for homeless individuals to get back on their feet quicker, prevent more people becoming homeless, as well as prevent anyone becoming homeless again if they have already been before.
Regardless of what barriers stakeholders have tried to tackle, what is clear is that using a co-production approach will help your local authority have the best outcomes to reduce homelessness and improve the community wellbeing of everyone overall.
Through using a co-production approach your local authority can work alongside housing associations and providers as well as support agencies to address all issues causing homelessness in your area to target your support to the people that really need it.
1. Opening homeless bank accounts
In response to rising homelessness, many banks have started to promote bank accounts specifically to help the homeless get back on their feet. Opening bank accounts for homeless people couldn’t be any easier and more and more banks are offering this kind of service to help break the cycle of homelessness further.
One of the most well-known is HSBC. Through working with Shelter, HSBC have been able to promote their ‘No Fixed Address’ service which was created to break the homeless cycle.
This campaign originally launched in 2021 and offers financial support to people without a fixed address to help them and prevent them being denied future housing or jobs because they do not have a fixed address.
The Assistant Director of Marketing and Content, James Allen at Shelter stated that:
“ Not having a bank account makes it nearly impossible to escape the cycle of homelessness. So, this game-changing service is giving more people who have fallen on hard times a helping hand towards gaining financial independence and rebuilding their lives.”
This campaign in particular has been a huge success. Within the first two weeks HSBC saw an increased uptake on No Fixed Address bank accounts by 52%. This has helped homeless citizens be able to reconnect to their communities, gain more stability, and ultimately help them a achieve a better quality of life without having to worry where they will sleep each night.
HSBC aren’t the only banks offering these types of account schemes. All top high street banks and building societies are offering their versions too including Nationwide and Lloyds as well as online banks too such as Monzo, Revolut, and Starling.
These homeless bank accounts therefore are examples of a major step forward in helping individuals break out of the cycle. It is important to note however they do run the risk of attracting fraudsters who could use the services to gain access to multiple accounts.
In order to prevent this risk and prevent homeless people missing out on this opportunity, it is crucial that banks work closely with homeless charities and local authorities so everyone involved has the confidence it is being used correctly.
For more information on how can a homeless person open up a bank account discover Shelter’s guide where they explain the different stages an individual will need to go through to be able to access a homeless bank account correctly without the risk of being denied at the final processing stages.
2. Reducing Housing Pressures
Another way local authorities can help homeless individuals in their area is by ensuring they can provide fully safe and compliant temporary housing.
One of the biggest issues for local authorities is ensuring all landlords are fully compliant, regulated and that their properties meet the individual’s needs. With more and more households seeking help from local councils to find temporary accommodation it is crucial that time can be saved to find the most appropriate accommodation quickly so households are not left waiting and are not placed in unsuitable accommodation.
According to research published by Shelter 274,00 people were reported as homeless in England in 2021 with one in every 206 people without a home.
Polly Neate, Chief Executive of Shelter said that:
“We predicted the pandemic would trigger a rising tide of evictions and our services are starting to see the reality of this now. We’re flooded with calls from families and people of all ages who are homeless or on the verge of losing their home.”
As the pressure has continued to increase post pandemic, local authorities need to find a way to find appropriate accommodation quickly whilst making sure all the thorough checks are made.
This is one of our biggest aims in our Housing solution. We work hard so we can help local authorities and their communities provide temporary accommodation more safely.
One of our customers, WREN Housing found through using our Access Adam Housing Solution they were able to automate their compliance regulations to onboard landlords that were 100% compliant, as well help their teams manage their workloads better so they no longer need to rely on paper processes, spreadsheets, and manual tasks.
Through our housing solution we allow all information to be stored in one centralised system making it easier to track the case of an individual. Here our automated compliance checks have full reporting and auditing functions to save time even when demand is high so no one is left being placed into accommodation without it being checked first. Since WREN Housing started using our Housing Management system they have been able to place over 6,000 households into safer and more compliant temporary housing.
For more information in how our Access Adam Housing Solution can help your local authority streamline your processes and place individuals into safer temporary housing quicker, so you can concentrate on helping them break the cycle of homelessness completely, contact us today.
3. Invest in more preventative measures
Ultimately one of the other most important things your local authority can do to overcome the challenges of homelessness is by investing in more preventative measures.
For this to happen your local authority will need to use a proactive co-production approach to make the best use of the services and resources you already have, as well as listen and engage with other stakeholders’ ideas in how homelessness can be prevented further in your area.
It is crucial to invest in more preventative measures as prolonged homelessness can have serious impacts on individuals’ mental health. Investing in preventative measures is important therefore as it stops more people becoming homeless as the numbers continue to rise as well helps individuals who are getting back on their feet be homeless once again, as well as help improve community health and wellbeing.
Social Prescribing is just one example of a preventative measure your local authority can invest in. Here Social Prescribing Link Workers can concentrate on the underlying issues of why an individual has become homeless and help them and your local community with services that best meet their needs.
Social prescribing in housing offers people the opportunity to get back on their feet, out of fuel poverty and manage financial burdens better. Alerts can be sent out to Link Workers across the community to understand why certain bills have not been paid on time such as council tax or water bills to ensure everything is ok in a household and offer support before its too late.
Through providing these preventative measures the need for temporary accommodation can be reduced as well as the higher dependency on local authorities overall.
At Access Elemental Social Prescribing we offer a digital social prescribing platform that allows local councils, housing support services, and charities access to be able to track the progress of their resident’s wellbeing. Here councils, charities and housing associations can make sure they have the resources they need to meet the demand as well as adapt accordingly when needs change.
One of our customers Warm Wales, has found since working with us they have been able to track health journeys in more detail to demonstrate to other housing associations the impact their advice and support is having on the community.
By Warm Wales knowing and understanding the impact a cold home can have on someone’s physical and mental health they have been able to evaluate all these issues holistically to make a real difference in the long term.
Their work concentrates on maximizing service users’ income so all homes can remain nice and warm, as well as safe to prevent anyone living in unsuitable conditions.
Investing in social prescribing is a great way to offer more preventative measures and help break the cycle of homelessness by allowing local authorities to offer support to issues before it is too late, to ensure your community is happier, safer, and living in higher quality housing without the risk of being evicted.
Breaking the cycle of homelessness – What are the key takeaways?
In this article I have reviewed what the homelessness cycle is and the variety of factors that can lead to someone becoming homeless. The article has also evaluated why it is difficult to break away from the homelessness cycle, including the struggle there is to open homeless bank accounts, and people accessing the specific support they need.
The article has then explored the different laws and grants the government have put in place to help local authorities cope with the rise of homelessness in their area. It is clear that both the Homeless Prevention Grant and the Homeless Reduction Act have helped make some great progress but for it to be fully successful it is crucial that local authorities use the boost in funding correctly to help target and support people in their area that need it most.
It is also vital local authorities are aware that becoming homeless can happen to anyone at anytime due to the unstable job market and the pressures of the cost-of-living crisis. Often when people end up homeless they can feel ashamed, or like a failure. It is the responsibility of local councils to ensure individuals realise it is not their fault and by identifying the underlying issues that got them there in the first place can help prevent them ever being in the same position again.
At The Access Group, we know and understand the pressures from the rise of homelessness across the UK. Both our Housing Management Solution and our Social Prescribing Platform offer great ways to both manage placing individuals into safer temporary accommodation as well provide both practical and emotional support to prevent households ending up being stuck in the homeless cycle for longer periods of time, as well as offer the best advice on how to maximise their incomes so they never end up in the same position again.
Learn more ways about how your local authority can make housing more permanent by downloading our housing guide today.
For more information on our Local Government software and how we can help your local authority break the cycle of homelessness contact us now.
