Tackling the impact of the cost of living crisis on homeless people should be a national imperative

The world is witnessing a new global crisis with unprecedented increases in food shortage, rent, and gas and electricity prices. The political and economic turmoil exacerbated by the pandemic and sanctions against Russia on oil and gas following the invasion of Ukraine have impacted the world economy like a storm. As people are experiencing the consequences of economic slowdown, rising costs of living and the UK economy flirting with recession, vulnerable groups are suffering the most, particularly the homeless population. But how exactly is the cost of living crisis impacting the homeless and what can be done to cushion the blow?

Soaring prices are affecting millions in the UK, with inflation, which hit a 40-year high last July, putting the basics out of the reach of many more people. The increased costs will undoubtedly drive more people into poverty, as benefit deductions are pushing people into destitution, homelessness and rough sleeping. But what about those who are already homeless? How will they survive this latest economic tsunami?

Rocketing costs are already impacting people on low or unstable income or those who require state benefit, such as Universal Credit, to pay rent for their accommodation, food and utility bills. Booth (2022) reported that the number of people homeless in England is predicted to jump by a third by 2024 as Councils warn of a 'tidal wave' of need caused by benefits freezes, soaring food and energy bills and the ending of Covid eviction bans.

According to the think-tank Resolution Foundation, the poorest quarter of households is set to see their real incomes drop by 6 per cent in 2022-23, resulting in a further 1.3 million people falling into absolute poverty. Research from the Joseph Rowntree Foundation shows that when the Chancellor announced his cost of living support package in May 2022, around 7 million low-income households were already going without one essential living need, such as a warm home, enough food or appropriate clothing. Changing Lives, a charity which works with people experiencing deprivation and social exclusion, has seen a massive increase in uptake of its services by those no longer able to make ends meet.

The charity has found that experiences of food poverty and hunger are becoming commonplace and a growing number of people are at high risk of eviction. It also found that some of the people it supports to move on from homelessness services are now facing the prospect of living with a deficit of almost £200 per month in private rented accommodation.

The cost of living crisis will have ramifications for upstream homelessness prevention, and could have a particularly significant impact on people with experience of homelessness who have moved into private rented sector accommodation, potentially leading to a return to the streets. There is also concern about the impact that it may have on the viability of service providers as well as the voluntary and community sector: as costs increase, there could be a reduction in the availability and quality of accommodation provision to help move people off the streets when they have fallen through the gaps in the social safety net.

The Kerslake Commission's progress report on homelessness and rough sleeping, A new way of working: Ending rough sleeping together' was published in September and reported that while the steps taken by the government so far are welcome, there must be further urgent action focused on supporting those most at risk of destitution. The commission is recommending that there should be a temporary moratorium on evictions while the inflation rate remains high, as well as a pause on benefit deductions, alongside further recommendations to bolster the social security system. 

What measures can be introduced to address cost of living for the homeless?

During the pandemic, the government put in place a temporary ban on evictions in order to protect people from being made homeless at a time of great economic uncertainty, job losses, and increasing rent arrears. This moratorium ended in June 2021. Government figures released in May 2022 (as reported by the Kerslake Commission) showed that 5,890 landlords in England started no-fault eviction court proceedings against their tenants between January and March 2022: an increase of 41 per cent compared to the same quarter of 2020. The cost of living crisis is likely to push even more people into financial hardship and rent arrears, putting more people at risk of eviction and homelessness.

The Kerslake Commission recommended the government introduce a new temporary moratorium on evictions to ensure that no one is made homeless as a result of the spiralling costs. The commission also recommends that local councils and housing associations should take this forward voluntarily regardless of whether an eviction moratorium is introduced. Homeless services and charities have urged the government to introduce measures immediately to minimise the crisis; this includes increasing housing benefit so that it can cover the cost of rising rents to ensure people can remain in their homes.

The financial consequences of the cost of living crisis are certainly going to impact millions of people and will lead more homeless people to experience mental health problems and the more vulnerable to access services for psychological support, due to financial, psychological and emotional pressures. The constant worry, anxiety and stress could lead people into deep depression, low mood, hopelessness and social isolation. Homeless people are also more likely to self-harm, exacerbated by their social situation, traumas and challenging lifestyles.

Such a crisis is above politics and political parties – a 'nation-wide approach' is necessary, bringing energy companies, central and local government, community and voluntary sector partners and organisations, homelessness and health services together to work constructively to prevent the financial constraints pressures on the homeless. This could include helping people with rent arrears, court fines and judgments and working constructively with landlords to prevent evictions, negotiate payment plans, instalments and other personalised financial arrangements to prevent people going back to the street.

 References

Booth, R: 'Homelessness set to soar in England amid cost of living crisis'

Joseph Rowntree Foundation: 'Not heating, eating or meeting bills: managing a cost of living crisis on a low income'

The Kerslake Commission on Homelessness and Rough Sleeping (2022). Progress report

This article is from the Winter 2022/23 issue of the Political Psychology Section Bulletin.