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The cost of failing to prevent homelessness
Emma InsleyInsley Consulting
Reconnecting Families
•Homeless Link research showed the impact of the service on clients and parents•My brief was to
undertake a cost-benefit analysis and prepare a report that makes the case for investing in homelessness prevention
Background to the research
•Homelessness on the increase• Youth unemployment• Benefit reforms• Cuts•G v Southwark Ruling
Homeless Link’s findings
Out of 10 young people:• Nine were more able to maintain positive
relationships with their family.• All reported increased motivation.• Seven had improved anger management techniques.• Nine were more able to respond positively to
authority / challenges to behaviour.• Six said they had better involvement / attendance
within education.
Feedback from young people and their parents
"I am much happier now and no longer feel suicidal; I needed this help from someone on the outside to talk to us.“ (Parent)
Feedback from young people and their parents
“My mum and dad split up and I wasn’t myself, I kept getting into trouble with the police, I assaulted my mum. I was always arguing with my mum’s boyfriend and I’d call dad and play them off against each other. She [the Reconnect worker] helped us all get back together; she keeps putting us back together.” (Young person)
Depaul UK’s own monitoring
• Homelessness was prevented in 82 per cent of clients• Housing was resolved for at least six
months in 76 per cent of clients referred to Oldham Reconnect• An average of three sessions are needed
to prevent homelessness
The benefits of early intervention
Cost-benefit analysis
Cost benefit analysisCost of Oldham Reconnect £46,429
Number of young people supported 128
Number of successful preventions (where known) 62
If homelessness was not prevented:• 16-17 year olds likely to be assessed as in need and
accommodated under Children Act• 16-25 year olds likely to be housed under housing act
27
35
Cost of accommodating under relevant legislation:• Children Act• Housing Act
£39,848£3,978
Suggested savings by Oldham Council by investing in homelessness prevention (35 x £3,978) + (27 x £39,848)
£1,215,126
Cost benefit analysisAverage cost per case
Total costs divided by the number of households supported by the scheme £ 363
Cost per prevention Total costs divided by the number of households who would otherwise have been statutory homeless £ 749
Savings per prevention
Cost of temporary housing for a statutory homeless household and any other savings avoided
Temporary & settled accommodation for 16-25 year old under Housing Act £ 3,978 Annual cost of accommodating a 16-17 year old under Section 20 (1) of Children Act £ 39,848
Average savings per case
Total savings from preventing homelessness under the scheme divided by the number of households supported £ 9,493
Can we afford not to?• Homelessness has life inhibiting impacts on a
young person’s health, economic and social wellbeing
• It also costs a lot of money• For 16-17 year olds assessed as in need it costs
an awful lot of money• If Reconnect saves the local authority from
accommodating just two people under Section 20 it has justified its funding
#canweaffordnotto?
