L-R: Mark Baillie, Head of Policy and Programmes at Homeless Connect, Eddie Magowan, Homeless Connect Board Member and Treasurer, Dr Caomihe Archibald, Finance Minister, Nicola McCrudden, CEO of Homeless Connect

On Thursday 25 July, Homeless Connect had the opportunity to meet with the Finance Minister, Dr Caoimhe Archibald MLA, at the Department’s offices at Clare House. The constructive and helpful discussion focused on three issues.

Supporting People funding and inflationary pressures

We opened the conversation by outlining to the Minister the pressures which continue to face providers funded through the Supporting People (SP) programme. We outlined that when it comes to SP, the key reason why organisations funded through the programme are facing financial challenges relates to the failure to ensure that the value of the programme keeps up with the pace of inflation. We stressed the importance of recognising that consistent and sustained investment which at least keeps up with inflation is needed to ensure providers can continue to support people in housing need.

We made the point that the 6.4% increase proposed in 2024/5, while very much welcome, does not make up for the failure to increase the value of the funding in line with inflation. Some organisations funded through SP continue to face an uncertain future even with this uplift.

Homelessness services budget pressures and consequences

We discussed the news which came out on Monday about the potential for services funded through the homelessness services budget to be closed later this year if additional resources are not identified. We articulated our disappointment about how this information has been conveyed to staff and the major damage which would be caused if these 19 services- which include some of the most strategic and innovative services seeking to prevent and reduce homelessness here- were in fact to close.

We further outlined that the current structure of the homelessness services budget leads to unfortunate consequences for homelessness prevention initiatives. This is a point we have made in our response to the EQIA on the Department for Communities budget allocation. Despite the fact that the Housing Executive views homelessness prevention as a high priority, the structure of this budget sees homelessness prevention funding pitted directly against the legal duty placed on the Housing Executive to provide temporary accommodation to households found to have homelessness status. We made the point that this is not an efficient way to spend money and places organisations- many charities- at risk depending on the level of demand for temporary accommodation.

Social Housing Development Programme budget and Financial Transactions Capital

We finally discussed our deep concern about the sharp cut in funding for the Social Housing Development Programme resulting from the fall in capital funding for the Department of Communities. The Housing Executive revealed on Monday that the funding available will only allow for 417 new starts in 2024/5 compared to a target of over 2,000. We made the point that around 70% of households living in temporary accommodation go exit in to social housing and that cutting down supply of social housing will only add to the pressures on the temporary accommodation system.

We made the point that Financial Transactions Capital- a form of funding which consists of a low interest loan from the Treasury- can be a useful supplement to capital funding, but that it should not be viewed as a replacement for it.

in closing, we welcomed the engagement of the Minister on the Housing Supply Strategy and outlined our view that the strategy has a valuable role to play in holistically ensuring that all elements of the housing system are coming together to see more high-quality housing which is suitable to people’s needs is built here. We articulated the importance of ensuring the views and experiences of people with lived experience are heard when it comes to housing and homelessness here.

We are grateful to Minister Archibald MLA for taking the time to meet with us and to hear our concerns. We know that she recognises the value of the homelessness sector and is keen to be supportive in what are very difficult circumstances.