CIH writes to DoF over ‘devastating’ impact of proposed budget cuts on housing in Northern Ireland

In the absence of an executive last year, Northern Ireland secretary Chris Heaton-Harris allocated funding to the DfC, leaving it with £111.2m (15.5%) and a shortfall of £59m (27.3%) in capital required for 2023-24.

The Housing Executive warned last year that a £7.4m shortfall in funding for homelessness services would make it “virtually impossible to provide services to prevent homelessness”.

The letter to Mr Gibson highlights concerns that a real-terms cut will impede the construction of “much-needed” social housing.

It said: “In the preceding fiscal year (2022-23), construction began on 1,956 new social homes, slightly exceeding the set target of 1,950. 

“However, the inadequate capital budget for the current financial year is projected to result in the commencement of fewer than 1,500 homes. 

“This presents a substantial impediment, especially considering the ambitious objective outlined in the draft housing supply strategy, which aims to build an average of over 2,200 homes annually.”

The organisations said a budget reduction “would have far-reaching implications for the housing market and the economy at large”. 

“Research indicates that investment in social housing has a significant multiplier effect on the economy. The social housing sector, historically at the forefront of setting environmental standards, also requires adequate budget to deliver viable, low-carbon homes in areas of housing need,” they wrote.

The warning comes as Northern Ireland’s housing waiting list hit an all-time high, with 45,615 households on the list and 4,469 households in temporary accommodation. 

The organisations said that strengthening efforts to prevent homelessness and sustain tenancies, including housing advice services and financial support, is “essential to avoid the human and financial costs associated with homelessness”.

“Housing makes a significant contribution to addressing homelessness, and to overall health outcomes; a lack of investment will add to the challenges within our health system.

“Poor housing in Northern Ireland is known to cost the NHS tens of millions of pounds per annum,” they said. 

The letter also highlights the impact budget cuts will have on the Supporting People programme, which supports people to live independently in their homes. 

They said: “The programme plays a vital role in supporting vulnerable people, preventing homelessness and delivering essential bespoke support services. 

“Despite its proven social value, the lack of consistent resource increases over the years has diminished its potential impact. For 15 of the last 16 years, the programme has not received inflationary uplifts.”

They added that the level and complexity of needs for housing support has continued to rise “but the commensurate funding has not risen accordingly”.

The letter urges Mr Gibson to “carefully review the potential impact of budget cuts on the Department for Communities and engage in a constructive dialogue to find solutions that prioritise the well-being of our communities”.

Justin Cartwright, national director for Northern Ireland at the CIH, said: “We are deeply troubled by the potential budget cuts looming over housing. 

“The proposed cuts to the capital budget are particularly alarming, as they threaten to impede the construction of much-needed social housing at a time when the demand has reached unprecedented levels. 

“The construction of new social homes is not merely a statistic; it is a lifeline for thousands of vulnerable individuals and families facing housing stress.

“Beyond the immediate humanitarian concerns, there are broader economic ramifications to consider. 

“Investment in social housing has consistently demonstrated a powerful multiplier effect on the economy, creating jobs, stimulating local businesses, and contributing to overall economic prosperity.”

Nicola McCrudden, chief executive of Homeless Connect, said: “As the representative body for the homelessness sector, we are very concerned about potential budget cuts for homelessness and supporting people services. 

“Over the last decade, the number of households with homelessness status has more than doubled to reach over 27,500. The need for temporary accommodation is the highest I can recall and is increasing month on month. 

“The pressure on the system cannot continue and we fear for the consequences if funding for housing and homelessness isn’t given the priority it needs.

“Charities who provide homelessness services have been financially squeezed for many years and are experiencing staff retention and recruitment problems. Whilst the need for support has risen, the level of resources provided has not. 

“The homelessness sector and our statutory partners are working incredibly hard to support people experiencing homelessness. However, without the level of resources the sector needs, the situation is going to worsen for many services and ultimately the people who require them.

“Any form of cut to the Supporting People programme or the homelessness services budget is unthinkable. 

“To implement a cut would put us even further away from dealing with the homelessness crisis here and would detrimentally impact thousands of people, including children. 

“We need social housing, properly funded services to support people experiencing homelessness and investment in homelessness prevention.”