MPs urge government to provide funding for renters to repay COVID-related arrears

While the eviction ban has received broad support from housing and homelessness charities, many have complained that the government has done nothing to mitigate the huge levels of debt that some tenants have accrued while not being able to pay their rent.

Today the HCLG Committee has said the government will “eventually have to come up with a policy response, because it cannot keep extending the eviction ban forever more”.

On homelessness, the HCLG Committee praised the support given to rough sleepers during the early stages of the pandemic, when the government ordered local authorities to find emergency accommodation for all people sleeping on the streets in what became known as its ‘Everyone In’ policy.

However, the report said that it has become too easy for people to fall through the gaps of support, especially those with no recourse to public funds (NRPF) due to their immigration status.

“Everyone In by definition has finished. The government believes Everyone In continues to exist, but by its own admission it is no longer helping everyone,” the report said.

It said the government made a “clear decision” to stop providing support to all people in May last year when it sent a letter to local authorities asking them to use their judgement when assessing whether those with NRPF should be accommodated.

The government is now being urged to issue “clear guidance” to councils stating that they “can and should” use their legal powers to find accommodation for those who would otherwise be ineligible for support during the public health emergency.

The HCLG Committee is also recommending that the government create “a cross-government taskforce to resolve the conflict between the commitment to end rough sleeping and the current policy on the no recourse to public funds condition”.

Clive Betts, chair of the HCLG Committee, said: “It is just over a year since the pandemic transformed our lives. In that time the government has done great work, alongside partners in local government, healthcare and the charity sector, to ensure that rough sleepers were kept off the streets. However, cracks are beginning to show in this strategy and people are being allowed to fall through the gaps…

“The ongoing crisis of rent arrears in the private rented sector is deeply concerning. The economic consequences of the pandemic could be long-lasting and become even more severe. The ban on evictions has ensured that people remain in their homes for now, but the debt will continue to increase. Landlords, many of whom only own one or two properties, will also be struggling with a loss of income.

“The government will have to find a solution that is workable for tenants and fair for landlords. The gravity of the situation means it should be treated just the same as other sectors of the economy and society that have a clear roadmap out of lockdown. Helping tenants pay their rent arrears would come at a cost, but would ultimately prevent significant expenditure on homelessness assistance further down the line.”

Jon Sparkes, chief executive of Crisis, said: “There is no doubt that government action to protect those facing, and at risk of, homelessness during the pandemic transformed lives and prevented many people from destitution. Today’s report is so important as it highlights the need to look beyond the emergency response to achieve lasting change and real progress towards ending homelessness.

“As the economic impact of the pandemic continues to be felt and unemployment rates rise, we know many households are struggling to keep their heads above water. We simply must not see an influx in renters becoming newly homeless in the weeks and months to come.

“The clear and helpful recommendations of this report are very welcome as they provide a strong basis for a strategy to tackle rough sleeping and homelessness going forward. There must be an emphasis here on preventing homelessness before it happens. Addressing the poor supply of social homes and a financial support package for renters in arrears due to the pandemic must be an integral part of this.”

Steve Douglas, chief executive of St Mungo’s, said: “This is a considered and thoughtful piece of work which drew on evidence from all areas of the sector. We are especially pleased that the committee sought the contributions of people with lived experience of homelessness during the pandemic, including two of our clients Tracey and ‘T’.

“The report’s recommendations are bold but deliverable. They echo several issues that we have highlighted – especially in connection with the ban on evictions. The report also recognises the significant link between homelessness and ill health.

“We know that to prevent more people becoming homeless when the eviction ban ends, action must be taken now and a plan put in place for the future.

“We back the call to establish a cross-government taskforce to resolve the conflict between the commitment to end rough sleeping and the current policy on no recourse to public funds, which we see as counter-productive to addressing complex situations for people who are non-UK nationals, which includes many people with settled status.”

An MHCLG spokesperson said: “Everyone In is still ongoing and for the committee to suggest otherwise is misleading. We have spent over £700m this year and are spending £750m next year on tackling homelessness and rough sleeping. We are also working with partners to learn any lessons from the pandemic and as part of our ambitious plans to end rough sleeping for good.

“We’ve acted to give renters robust protection during the pandemic, with longer notice periods of six months and banning bailiff enforcement of evictions for all but the most serious cases until 31 May.”