Chancellor Philip Hammond announces £10m to tackle homelessness

Staff reporter(wp/es):
Philip Hammond put up £10 million to tackle homelessness today

 in an Autumn Statement to help families through Brexit.

He aimed to speed up the building of affordable housing in the capital, confirming plans for 90,000 more homes at lower cost or cheaper rents.

In a package overshadowed by massive borrowing and greater economic uncertainty from Brexit, he found spare change for a £1.5 million grant for play care and treatment of children with cancer at the Royal Marsden Hospital in Chelsea, and another  £3 million for the RAF museum at Hendon.

Announcing new money for people sleeping rough, the Chancellor said “one person” left on the streets was too many.

He praised the Standard’s Christmas Appeal to raise vital funds to launch the Centrepoint Young and Homeless Helpline, saying it would “make a huge difference to people’s lives”.

Mr Hammond briefed the Cabinet on his debut Autumn Statement this morning, with the City and MPs on tenterhooks for the first official  economic forecasts since Britain voted for Brexit.

A sharp downgrade in growth from next year and a big increase in borrowing were widely expected to limit his room for manoeuvre.

“This Government is determined to build an economy that works for  everyone, no matter their background,” Mr Hammond said as he confirmed the homeless help.

“One person without a home is one too many, and we want to identify solutions that look at all of the possible causes that lead to someone losing their home.”

He endorsed the Standard’s Christmas fundraising campaign, saying: “The Evening Standard has long been a champion of tackling homelessness and their current campaign will make a huge difference to people’s lives.

“This funding is another step in the right direction, and allows the Government to support different projects that will make a difference to people and communities across London and the rest of England.”

The cash doubles the Government’s existing Rough Sleeping Fund, which was announced earlier in the year. It will provide grants to local authorities that produce innovative projects to prevent people at risk of sleeping rough from spending even a single night on the streets, as well as giving support to those already sleeping rough. 

London is expected to be the largest beneficiary because it attracts thousands of people who are vulnerable to homelessness.

Money will be awarded to the best bidders — but among schemes being hailed in Whitehall as successes are the No First Night Out pilots in Tower Hamlets, Hackney and the City.

Mr Hammond was said to have had a dozen discussions with Theresa May in which he fended off Downing Street demands to loosen the purse strings ahead of the  possible pain of Brexit.

But the Chancellor was instead emphasising that the best way to improve Britons’ living standards was to provide economic stability, restore the public finances and boost productivity.

Policies trailed in advance by the Treasury were tailored to appeal to the 17 million who voted for Brexit in June. They included: 

Plans for 40,000 more affordable homes, with £1.4 billion of funding. In addition, restrictions will be relaxed allowing affordable housing cash to be used to support low-cost rents, shared ownership schemes and Rent to Buy.

A partial reverse to cuts in in-work benefits, by reforming Universal Credit so that families can keep more of what they earn.

A new taper will benefit three million households, according to officials, with a couple with two  children receiving housing help, where one parent earns £30,000 a year, being better off by £425 a year.

Unpopular letting agents’ fees that force renters to pay hundreds of pounds up-front will be scrapped, helping 4.3 million households in private rental homes.

Citizens Advice say such fees average £337, and Shelter says one in seven have to pay more than £500.

Reining in whiplash claims to reduce motor insurance premiums by £40 on average. 

For Labour, shadow chancellor John McDonnell said millions would still be worse off as the measures did not fully reverse “deep and damaging cuts” to benefits.

Liberal Democrat leader Tim Farron branded the package “all smoke and mirrors”. He said: “This will prove to be about one thing and one thing only — the impact of Brexit on the British economy.”

The Evening Standard's Homeless Helpline appeal is raising money for the Centrepoint Helpline, a brand new support service that will save young people from ending up on the streets.