The spending review in June of this year brought a welcome and hopeful focus on housing and homelessness. This time round, there is much less of a focus on housing, yet we are still hopeful to see changes from the spending review being implemented in multi-year plans. 

However, despite a less explicit focus on housing, there are still some interesting welcome changes. Changes to the benefits system put hopeful focus on those on the poverty line who are most at risk of homelessness. 

This budget included an increase in spending on benefits spending with payments boosted for those claiming Universal Credit and other benefits.

The stand out policy in the budget is the lifting of the two child benefits cap, this is not linked to the Child Benefit, but is the removal of a cap on benefits paid from Universal Credit and tax credits to families with more than 2 children. The OBR estimates this will increase benefits for 560,000 families by an average of £5,310, it is predicted that this will raise 450,000 children out of poverty out of poverty.

This landmark announcement will affect homelessness in a couple of ways, firstly, the poorest families in our society having a higher income will mean that they are less likely to be at risk of homelessness due to rent arrears. It will also mean many families who are already homeless will be more likely to be able to afford to rent their own home and leave temporary accommodation. 

Secondly, the long term effects of this will be large. Children who grow up in poverty are much more likely to be homeless as adults. By lifting hundreds of thousands of children from poverty the government will be reducing the chances that these children will become homeless as adults. This effect will not be felt immediately but it will save many people from the trauma of experiencing homelessness.

There were other smaller announcements regarding lowering energy bills, Winter Fuel allowance and the raising of the national minimum wage which will all have a proportionally bigger positive impact on the finances of the poorest in our society. These changes are welcomed and will help people to escape poverty and give people on the brink of homelessness a bit of breathing room.

We welcome the steps made to improve the incomes of the poorest in our society however this budget lacks the oomph needed to address systemic issues which lead to homelessness rising year on year. We still have a housing shortage crisis, a shortage of mental health support and funding for homelessness services which we see as the driving causes of the homelessness crisis.

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