Government Funding Cuts: What Funding Cuts Mean for Supported Housing and Beyond

In April this year, the UK government announced £300 million in funding cuts. A devastating cut to funding that it had only pledged as recently as 2021. On top of that: only half of the £500 million committed last year to help with a shortage of support staff will be released.

Certainly, these are two huge blows to the sector. However, focusing on the repercussions for the supported housing sector alone misses the wider picture of the impact. In this blog, we’ll explore exactly that. Because as Dr Carole Easton, Chief Exec at the Centre of Ageing Better, said, “To now remove more resources from this sector…is extremely short-sighted and harmful.”

A “Couldn’t be Worse” Timing

It might seem like there’s been less media coverage on the cost-of-living crisis lately. However, the crisis is still very much there. Beyond that, it’s worsening.

Last year the Resolution Foundation surveyed 10,470 adults across the UK, and the resulting statistics revealed a deeply troubling picture.

1 in 10 people reported going hungry because they didn’t have enough money.

Nearly 1 in 4 said they were unable to fix or replace a broken fridge.

Amidst dropping household incomes and rising costs, it’s the low-income families and the elderly who are feeling the pressure most. In other words, those suffering most are the very people who need the safety net of supported housing.

There simply couldn’t be a worse time to cut funding for supported housing.

The Cost of Funding Cuts

The government’s rationale for axing the funding? Simply, “Budget cuts”. But those in the supported housing sector are only too aware that cutting financial support creates even more costs. Resulting in a negative feedback loop that creates the conditions that prompted budget cuts to begin with.

Another sector that will feel the government funding cuts is healthcare. Specifically, the NHS. Study after study repeatedly shows that supported housing alleviates a significant burden from the healthcare system simply by supporting people who are experiencing homelessness.

A study by Manchester University showed that patients who were experiencing homelessness had annual admissions 179% higher and emergency admissions 208% higher when compared to other patients.

However, this is not just a tale of higher healthcare costs. The link between supported housing and probation is another critical aspect of this picture. Research shows that for every £1 spent on supported housing, taxpayers save a staggering £23 from reoffending costs (for example, costs to victims, communities, the criminal justice system, etc.)

Why Investment is the Smart Choice

At a surface glance, during hard economic times, budget cuts make sense. However, when we look at the effects of those cuts, we realise very quickly that cost-cutting in certain areas can be counterproductive. Instead of saving scarce resources, they drain even more. Unfortunately, this is very much the case for Supported Housing.

But the sector doesn’t only save the government from financial burden. It also strongly acts as a catalyst for the development and strengthening of the economy. For instance, the King’s Crescent estate, a regeneration project in East London, developed supported housing units as part of its wider construction. As a result, the entire neighbourhood was revitalised.

Other examples throughout the country show that investing in supported housing can attract local businesses and stimulate critical economic development.

The Holistic Way is the Only Way

The more pressure we face as a country, as a government, as communities, the more it serves us to act smarter and get more efficient. What that really requires is looking at the situation holistically.

When not doing so and looking at supported housing in isolation, perhaps budget cuts seem the lesser of evils. But such action at the complex intersection of healthcare, mental health and the criminal justice system will cost the UK government much more than the £300 million they plan to ‘save’.

The call here isn’t simply to ‘spend more’ in a sector that’s always notoriously been starved of funding. But it’s to allocate precious resources to where it can do the most, help the most, and save the most. Supported housing is undeniably at the forefront of this.

Do you work in supported housing and need some support in these difficult times? Click Here to see how we can help you.

References

Ageing Better. (2022). Short-sighted to drop housing funding in light of social care cuts.

Resolution Foundation. (2022). New Year’s Outlook 2023.

University of Manchester. (2021). Homelessness linked to emergency hospital admissions.

Housing Network. (2013). The hidden costs of housing and reoffending. The Guardian.

Hackney Council. Kings Crescent Estate.