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Powys County Times
2 days ago
- Business
- Powys County Times
Powys council to consider Home Office asylum seeker deal
Powys County Council is to consider a proposal from the Home Office which would see it get a boost to its housing budget in return for supporting asylum seekers. In a meeting of the cabinet next week, councillors will consider a pilot scheme being proposed by the Home Office which could increase support for the county's housing budget from Government funds. The paper recommends the cabinet puts forward a non-binding 'expression of interest' in the scheme on behalf of Powys County Council along with Carmarthenshire and Monmouthshire, to participate in the Home Office Asylum Dispersal Pilot. The plan would see the council buying or building new homes backed by Government money, then leasing them to the Home Office for 10 years before they return to the council's own estate. The Home Office would 'provide capital funding to Local Authorities to increase accommodation supply (of various types) in the medium-term (next 2-5 years)'. This would be through the 'purchase and renovation, or construction of new homes, including where practical on Local Authority owned land'. The Council would then 'lease the properties, which it would own, to the Home Office at Local Housing Allowance (LHA) rates for a 10-year term', with Powys County Council 'regaining control of the properties after this when Home Office demand should be reducing following the implementation of wider initiatives.' It is thought this model 'will support a net increase' in the Powys County Council's own housing portfolio 'as well as add to the net availability of homes in each area where this model is taken forward'. The paper adds that 'should any new development of homes follow it is anticipated such projects would be funded by the Home Office and not incur costs to the Council but would ultimately lead to an increase in the Council's housing portfolio.' It is thought the plan would relieve one of the large financial pressures on Powys County Council which, the report says, has an estimated a budget gap of more than £60m over the next five years. it would cut the need for high-cost temporary accommodation currently being used for people on the social housing wait list. The boost in housing stock would also allow 'for quicker permanent housing to be offered to those in need of a home' and 'increase council tax revenue through a net increase in the number of homes in the county.' Help support trusted local news Sign up for a digital subscription now: As a digital subscriber you will get Unlimited access to the County Times website Advert-light access Reader rewards Full access to our app The council would also have more of a say where people would be housed with the paper adding the council would be 'in a better position to shape the future design of asylum dispersal, especially in rural areas, as an alternative to having to comply with Home Office directives which may not be so sensitive to local need'. The paper adds that: 'The provision of accommodation and support for asylum seekers and refugees is a complex matter, which to be undertaken equitably and safely benefits from understanding and empathy across communities and neighbourhoods.' It goes on to stress that 'the Council, both officers and members, as an accountable public service, has a role to play in helping dispel rumours and misinformation about such matters and encourage a greater understanding within our communities'.
ITV News
24-04-2025
- Business
- ITV News
London's homelessness crisis poses ‘single biggest risk' to councils, warn leaders
London's homelessness crisis is now the single biggest financial risk facing local authorities, according to a new warning from London Councils. The cross-party group, which represents the capital's 32 boroughs and the City of London, says spiraling temporary accommodation costs have forced councils to overspend by at least £330 million this year, an increase of 60% when compared to original homelessness budgets. Councils are legally required to house eligible homeless residents, making it essentially impossible for councils to place strict limits on their expenditure. The number of Londoners in temporary accommodation is now at a record high, with 183,000 people, around one in every 50 residents, needing shelter. London Councils said the capital's boroughs are collectively spending £4 million a day on temporary housing, often relying on costly hotel placements due to a shortage of affordable homes. Over recent years, 45,000 properties have disappeared from the lower end of London's private rental sector. Grace Williams, Leader of Waltham Forest Council and Housing Lead for London Councils, said: "London councils are facing risk of bankruptcy and homelessness is becoming the biggest risk. "They're spending £330 million overspend on homelessness on top of their housing budget. "It's becoming a real risk of borrowers becoming bankruptcy and therefore having to get into debt to pay for local services for Londoners.' Asked why the situation has become so bad, she said: 'London is like the epicentre of the housing crisis. "56% of all homeless people nationally live in reason homelessness is so bad is a really bad combination of things like massive reductions in the number of landlords that are in London, the fact that housing costs are so high and the lack of home building over a long period..." Cllr Williams told ITV News of the implications of this in her borough. She said: 'In Waltham Forest, we spend 60% of our budget on adult and children's social care and homelessness. That leaves less for all the other services our residents rely on. "If councils go bankrupt, they'll have to borrow more, increasing debt over time.' London Councils is calling for urgent action in the upcoming government Spending Review. Its demands include ending the 14-year freeze on how much councils can claim back for temporary accommodation, making the recent uplift in Local Housing Allowance permanent, and boosting long-term investment in affordable housing. The group is also urging the government to prioritise the cross-departmental strategy on homelessness and ensure councils play a central role. A Ministry for Housing, Communities and Local Government spokesperson said: 'We inherited a serious housing crisis which is why we are taking urgent and decisive action to end homelessness, fix the foundations of local government and drive forward our Plan for Change. 'This government is providing £1 billion for crucial homelessness services and tackling the root causes of homelessness by building 1.5 million new homes, boosting social and affordable housing and abolishing section 21 no fault evictions.'
Yahoo
02-04-2025
- Business
- Yahoo
When will universal credit and PIP benefit payments increase?
Benefits payments will receive a welcome boost on 6 April, as they increase at the start of the financial year. Several benefit payments, including universal credit, will be increased to combat the rising cost of living and inflation. Here's what you need to know about the increases, how much they are, and when they will be paid. Housing benefit Housing benefit is being replaced by universal credit, which will contain the housing element for renters with private landlords. While the standard rate of universal credit is going up, housing benefit rates will be locked in at the current rate until 2026, according to government plans. The Local Housing Allowance (LHA), which calculates housing benefit for private renters, has been frozen since 2020. Research from the homelessness charity Crisis and the campaign group Health Equals indicated that just 2.5% of private rented homes were affordable for renters on housing benefit last year, The Guardian reported. Council tax support Some people are eligible for support and deductions from their council tax bill — including the single-person discount for those living alone. Each threshold for support differs from council to council. Check your council's website for details. Tax credits All tax credits, including working tax credit and child tax credit, will permanently stop on 5 April 2025 as part of the transition to universal credit. These tax credits will now be paid as part of the universal credit payment. Recipients will have received a migration notice and must apply for universal credit before the date specified on the notice to avoid any payment gaps. Universal Credit Universal credit will rise slightly in April by 1.7%, meaning that claimants will get a small boost to their monthly income. The rate for a single person aged 25 or over will rise from £92 a week in 2025/26, and to £106 a week by 2029‑30. For the basic, standard allowance of universal credit, that works out as follows: Single under 25: £311.68 a month to £316.98 a month Single 25 or over: £393.45 a month to £400.14 a month Joint claimants both under 25: £489.23 a month to £497.55 a month Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month PIP After concerns that PIP would be frozen for claimants in the next financial year, the government confirmed in March that PIP payments will also rise by 1.7%, matching September's inflation figure. The standard daily living rate will rise from £72.65 to £73.90, and the enhanced rate from £108.55 to £110.40 per week. For the mobility component, the standard rate will increase from £28.70 per week to £29.20 per week. The upper mobility rate, the enhanced rate, will increase from £75.75 per week to £77.05 per week. ESA Like other working-age benefits, ESA will also rise by 1.7%. A single person's weekly rate will rise from £218.15 to £227.10, and a couple's weekly rate will rise from £332.95 to £346.60. State pension Unlike other benefits, the state pension will increase by 4.1%. This is in line with the triple lock guarantee, which means state pension increases by an amount equal to the highest among three different measures— inflation, the average wage increase and 2.5%. For the full new state pension — for those reaching state pension age after April 2016 — the weekly rate will be £230.25, coming in at £11,973 annually. This amounts to an increase of £472 a year. For those reaching state pension age before April 2016, the new weekly rate is £176.45 a week, accounting for £9,175 a year — an increase of £363 a year. However, concerns have been raised that those on the full new station pension will have to pay tax on it from April 2026 as it will pass the income tax threshold, which currently stands at £12,570. Carer's Allowance If you care for another person for at least 35 hours a week, you can claim carer's allowance. This benefit is rising from £81.90 a week to £83.30. For many benefits, the new rates will take effect from 7 April. However, for some universal credit claimants, increased rates will take effect around June. This is because the new rate won't be paid until the first assessment period that begins on or after 7 April. What's worth bearing in mind is that you don't need to do anything — your benefit payments will automatically increase. The rise in benefits payments are linked to September's inflation figures — which some have argued is unfair. Universal credit is normally increased every April in line with the previous September's consumer price index inflation rate. The consumer price index measures change over time in the prices paid for a basket of goods and services, like food, clothing and housing. In September, this rate dropped to 1.7%, below the Bank of England's target rate of 2% for the first time since April 2021. While this might have been welcome news for shoppers hoping for a drop in food prices, it was bad news for benefits recipients. Even if inflation rose the next month — in October, it reached 2.3% — the benefit increase would still be based on the September rate. Currently, the latest inflation figures sit at 2.8%, down from 3% in January. At the time of the announcement, the Joseph Rowntree Foundation warned that the increase would "barely touch the sides". The charity's senior policy advisor Iain Porter told Yahoo News: 'The consequence of today's rate of inflation is that April's uprating will be worth just a few pounds to most people. 'The basic rate of universal credit is so insufficient it fails to protect families from hardship, and this increase will barely touch the sides.'
Yahoo
23-03-2025
- Business
- Yahoo
'Austerity in new clothes': Labour MP calls out Anas Sarwar on spending cuts
ANAS Sarwar has been called out for insisting his party has not implemented austerity measures as a Labour MP has insisted that they have – but 'just dressed in new clothes'. Clive Lewis, the Labour MP for Norwich South, has publicly debunked Sarwar's claims that Labour's spring statement will be 'the very opposite of austerity'. The Scottish Labour leader was quizzed earlier this week about his party's members quitting over the proposed £5 billion in welfare cuts as the MSP claimed austerity is simply when public spending "goes down". However, Lewis has refuted Sarwar's claim as he said austerity measures aren't just about 'raw numbers' and that it is about choices. READ MORE: Police decline to intervene as anti-abortion protesters flout buffer zone law Sharing a video of Sarwar at Holyrood, the MP wrote on social media that austerity happens when public spending doesn't keep up with inflation, population growth and rising needs, like poverty, climate crisis and an ageing population. 'Even if the budget rises in cash terms, cuts still fall hard in real terms. That's austerity — just disguised,' Lewis said. He went on to explain that the £5bn is a cut to welfare spending because how benefits are uprated is changing, which includes freezing thresholds, cutting inflation links like the Local Housing Allowance, and capping eligibility. Lewis (below) added that despite the Department of Work and Pensions (DWP) spending more overall, because more people are struggling the UK Government will spend less than it would have under the previous rules. (Image: Newsquest) 'That £5bn is a 'cut' in planned support, not total spend. A real-terms cut to the poorest, during a cost-of-living crisis,' Lewis said. 'This is austerity by stealth.' Lewis made the final point that Labour's plan is to implement austerity measures not by shrinking the state but rather by restructuring it by increasing spending on defence and corporate welfare and decreasing spending on social security. 'What we need isn't just more spending,' he added. "We need different spending — grounded in economic democracy, not deference to capital. 'I'm afraid austerity's still here. Just dressed in new clothes.' Last week Work and Pensions Secretary Liz Kendall (below) outlined the UK Government's controversial plans to reform welfare which included tightening the eligibility criteria for Personal Independence Payment (PIP) in a move which has been heavily criticised by politicians and campaign groups. Kendall confirmed applicants for PIP will now need to score a minimum of four points in at least one activity to qualify for the daily living element adding the changes were necessary, so the benefits system is focused on 'support for those in greatest need'. The Fraser of Allander Institute previously noted that a £1bn reduction in PIP spending through reduced caseload would worsen the Scottish Budget by around £115 million. Kendall also outlined plans to scrap the work capability assessment for Universal Credit and that the UK Government will consult on whether the health top-up to the benefit should be delayed for those aged under 22. SNP Westminster leader Stephen Flynn MP warned the cuts 'will harm the most vulnerable, push disabled people into poverty' and mark 'the start of a new era of austerity cuts under the Labour Party'. Scottish Labour have been approached for comment.
Yahoo
15-03-2025
- Business
- Yahoo
Council responds after reports London's homeless could be housed here in city
The rising numbers of people rough sleeping and being left homeless is a concern in any city. During its recent budget setting process, Liverpool Council cited the increasing pressure of homelessness on its books, with cash having to be found to support those in need. This is the case for councils up and down the country, with many relying on temporary accommodation or expensive hotels to house people who have nowhere to go, sometimes through no fault of their own. One such council is Enfield in north London. The borough is located more than 200 miles away from Liverpool but caused quite a stir in the north west last week as it emerged from national press reports that the council was seeking to buy up dozens of properties in this city region for its own homeless people to be housed in. READ MORE: Man found dead in car outside pub READ MORE: Sienna-Rose flight and health update as family 'sobbing with relief' The news came via a document released in October last year in which the London council's housing and regeneration scrutiny panel was told through its own wholly owned company Housing Gateway, it anticipated purchasing 28 properties 'around the Liverpool area' in the next six months. A further report in December said it was 'more cost effective' for Enfield to own accommodation than to lease it and would target piloting a scheme here. The documents said: 'This will enable residents to be in the local area where they can seek to find suitable, long-term accommodation. 'Leasing temporary accommodation is a huge cost pressure for Enfield which is not sustainable indefinitely. It is therefore important that Enfield reduce the amount of TA in use.' However, the borough has now sought to calm fears the London council could be sending more people to take up vital properties in the city. However, it could still consider looking across the wider Liverpool City Region. An Enfield Council spokesperson said: 'Enfield Council is committed to providing safe, stable, and affordable housing for our residents who are experiencing homelessness. In recent years, the significant shortage of affordable rental homes in Enfield and across London has impacted our ability to place families in suitable homes within the borough. "This crisis has been worsened by rising rents, a collapsing private rental sector for affordable homes within Local Housing Allowance (LHA) rates, and an increasing number of families and residents facing homelessness. To ensure that residents have access to secure, long-term stable homes, we have taken the difficult but necessary step of looking into the possibility of buying a small number of residential properties in more affordable areas, including the wider Liverpool area, though not in the City of Liverpool. 'At this time, no properties have been acquired in the Liverpool area.' The council said this approach was guided by policy introduced to address the severe shortfall in temporary accommodation and reduce the reliance on costly and unsuitable hotel placements. The spokesperson added: 'Where possible, we continue to seek housing solutions closer to Enfield. Our focus remains on increasing the supply of affordable homes. We will continue to work with the government to address our borough's housing needs.' This is not uncommon, however. Councils are often forced to relocate people out of city boundaries where required, for example if they need special types of accommodation or are required support with a pet. Cllr Sam East, Liverpool Council cabinet member for housing, said since reports emerged, the authority had been working to establish the facts. He said: "The reports were alarming and I understand the concern it's caused – however it's simply not as described. "Enfield Council have given us a statement that they have no properties in Liverpool, nor any plans to procure them. It appears there is an intention to procure in the wider Merseyside region though, and this may have been mistakenly communicated as Liverpool. "As a result of our enquiries this week we have already shared information with our neighbouring authorities to support them with this. Out of boundary placements happen, but it can't be right for local authorities to make a policy decision of this nature and move people hundreds of miles routinely. It's another stark symptom of the housing and homelessness crisis in this country, and we will look to work on this across a city region footprint, through the Local Government Association and with the new government." Despite this, the challenges remain here at home to tackle rough sleeping and homelessness. The trend of rough sleeping in Liverpool ticked upward throughout 2024 when compared to the same period in 2023. The average number of people seen each night rough sleeping between April and September 2024 was 30, an increase on the average of 22 people seen per night over the same period in 2023. Documents released by the city council last month also set out how an increase in people seeking asylum and prisoners released early risks adding to Liverpool's already climbing rough sleeping figures. Without mitigation, it is expected that more than £11m in budget pressures could be added to the council's books as a result of the growing homelessness crisis. The proposals from down south attracted anger from Cllr Carl Cashman, leader of the Liverpool Liberal Democrats. He said: 'In Liverpool, we've already got a temporary accommodation bill for our residents - it's ballooned in size, now it's costing the taxpayers millions every year. 'This isn't kicking the can down the road, this is kicking it across the other side of the country. This is not good for people being moved nor the communities they are being moved to. Imagine the council telling you they'll house you but only if you move over 170 miles away, that's awful and it's going to add even more upheaval to people's lives. 'We need the Labour government to listen to councils. They are being crushed under the weight of mounting costs and we are struggling to get by. We need national funding to launch local initiatives to tackle homelessness in our towns and cities - not just Liverpool but across the country. 'That starts with providing social housing for those that need it in our communities - something the Lib Dems have long called for in Liverpool.' This prompted a response from Cllr East. He said: "I would gently make two points to the politicians in our city who chose to make sweeping public statements on this issue. "Firstly, if they had approached me for an understanding of the facts here I would have happily worked with them. We all want to work together on the homelessness crisis. "Instead they went straight out to make a public statement attacking the city council and no doubt caused undue concern in our communities."
