Scrap social housing bid barrier for ‘debt-trapped’ families, says report

Researchers called for thresholds like these, which are mirrored across many UK local authorities, to be scrapped. 

The report added that housing debt disproportionately impacts women, whose entry into homelessness is often the result of domestic abuse.

Inside Housing reported last week how English councils’ spending on temporary accommodation rose by 9% last year to hit £1.7bn, the latest government data shows.

That figure follows an earlier release which found that the number of people in temporary accommodation was at a record high.

The number of children in this situation is also at the highest level since records began in 2004, with 131,370 children in temporary accommodation as of the end of March.

In addition, a nationwide survey earlier this year found that four in five council landlords are seeing significant rises in rent arrears.

One of the researchers, Dr Mel Nowicki from Oxford Brookes University, said: “While private debts are generally small and negligible in pure financial terms, our research shows the huge and disproportionate negative impact they are having on families’ lives and futures.”

Other proposals included increasing the quality of social housing to ease tenants’ reliance on loans to make temporary and permanent accommodation. 

A mother of two in Greater Manchester called Jade, who was interviewed by researchers, said she was moved into temporary housing with “no bedding, no pillows… there was absolutely nothing in it at all. I was just literally given keys.”

The report called for an increase to Universal Credit (UC) and the Local Housing Allowance, saying that neither “adequately cover the costs of living and housing, therefore contributing to families’ struggles to meet the shortfalls”.

Similarly, it said UC payments should not be linked to debt repayment deductions so as to give families “more ability to tackle their debts in a way that better takes into account their personal circumstances and day-to-day needs”.

Professor Katherine Brickell, lead researcher on the study at KCL, said: “The research clearly shows how debt is not only causing, lengthening, but also outliving family homelessness. More action is needed on the punitive impacts of debt on women’s and children’s lives.”

“For England’s lowest-income and most financially vulnerable, debt has become a necessity of survival, rather than choice.”

A government spokesperson said: “We are determined to prevent homelessness before it occurs and have given £2 billion over three years to help local authorities tackle homelessness and rough sleeping, targeted to areas where it is needed most.

"Councils can use the funding flexibly, for example, to help people find a new home, get help with evictions, or move into temporary accommodation - ensuring no family is without a roof over their head.’"

Inside Housing has also approached Oldham Council for comment.