Greater Manchester Mayor's Charity responds to the Spring Budget

The Spring Budget has some welcome concessions amidst a cost of living emergency, but far more needed to stop the increased risk of homelessness for many struggling in the private rental sector.

The spring budget is launched amidst a deepening cost of living emergency. While we may well have swerved a ‘technical recession’, the budget has further to go if we are to arrest the crisis of inequality and in particular, address a housing crisis which is exposing many to the risk of homelessness. Just a few weeks ago, official statistics reported a 26% rise in the numbers of people rough sleeping while nearly 100,000 households were in temporary accommodation. More than 72,000 more households were also facing homelessness.

It is of course welcome to see components that can make a substantial difference to the circumstances of families and households, and the extension of the energy price freeze and introduction of new child care packages does much to signal the potential and willingness to implement both immediate relief and longer-term reform.

However, a breakdown of the policy decisions announced at the Spring Budget does not make any reference to the countless people struggling in the face of staggeringly high private rental prices, nor appear to have responded to a number of high profile representations made by organisations working to support those at risk of experiencing homelessness. With no changes in sight for Local Housing Allowance, private renters in receipt of housing benefit will continue to see a substantial gap between the benefit they receive and the rent they must pay.

The Spring Budget has paid some clear attention to the cost of living emergency, but it has not gone far enough. We know the stock of social housing is dwindling, and while the numbers of people in temporary accommodation remains high ensuring that the private rental sector is accessible and maintainable to those with smaller incomes is key. Though the budget will offer some relief to household budgets, risk of homelessness for people struggling to pay their rent remains and there is no clearer pathway to reduce the numbers of people in temporary accommodation.

Responding to the budget, Fran Darlington-Pollock, Head of Strategic Development, said:

“The cost of living emergency is certainly softened by the energy price freeze and the extended childcare provision, but without targeted support for private renters unable to make ends meet, risk of homelessness will increase.”

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