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STV News
10-06-2025
- Business
- STV News
Swinney calls for more cash to address housing crisis ahead of spending review
The First Minister has urged the UK Government to take more action and spend more money to address Scotland's housing crisis in the upcoming Spending Review. At least 12 local housing emergencies have been declared across Scotland, with the first declared by Argyll and Bute Council in June 2023. Edinburgh, Glasgow, Fife and West Dunbartonshire Councils followed suit. The Scottish Government formally declared a national housing emergency on May 15, 2024. The number of people in Scotland living in temporary homeless accommodation is at a record high, according to a report from the Convention of Scottish Local Authorities (COSLA). Pressures have also increased on social housing. Speaking ahead of his speech at the Scottish Federation of Housing Associations in Glasgow on Tuesday, the First Minister re-emphasised that Scotland 'faces a housing crisis'. He said the Scottish Government is already investing £768m this year in affordable housing, but he's calling for the UK Government to do more. 'We continue to call on the UK Government to provide multi-year funding for housing to give developers and third sector organisations long-term certainty,' Swinney said. 'The UK Government must also commit to unfreezing Local Housing Allowance rates. These rates set the amount that private renters receive to help with rent. Increasing these rates can be a key lever that can help protect tenants. 'Repegging these rates to the 30th percentile of local rents would mean greater security for many households across Scotland.' Swinney's comments have come less than 24 hours before UK chancellor Rachel Reeves is set to present a major UK spending review. The review technically isn't considered a 'fiscal event' – meaning there shouldn't be any detailed tax or spending decisions. However, the chancellor is expect to plot out her public spending plans for the next three years, department by department. It will reveal Labour's priorities, and could see some areas of public spending cut to provide more money to others – like the NHS or defence. It will also chart a course for spending on things like housing. Reeves will reveal the spending review on Wednesday after Prime Minister's Questions at noon. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Edinburgh Reporter
10-06-2025
- Business
- Edinburgh Reporter
Demands for UK Government to do more for housing in Scotland
First Minister John Swinney has urged the UK Government to do more to support Scotland's housing sector in the upcoming Spending Review. The First Minister will set out his vision for the future of Scotland's housing sector in a speech at the Scottish Federation of Housing Associations in Glasgow later. Ahead of his speech the First Minister said: 'Scotland faces a housing crisis which is why we are investing £768 million in affordable housing in 2025-26, the majority of which will be for social rent. This includes up to £40 million for acquisitions, to help reduce the number of homeless households, especially with children, in temporary accommodation. 'We are keenly aware of the benefits of providing multi-year spending plans to our partners and want to prove this stability across the public sector. We continue to call on the UK Government to provide multi-year funding for housing to give developers and third sector organisations long-term certainty. 'The UK Government must also commit to unfreezing Local Housing Allowance rates. These rates set the amount that private renters receive to help with rent. Increasing these rates can be a key lever that can help protect tenants. Repegging these rates to the 30th percentile of local rents would mean greater security for many households across Scotland.' Prime Minister, Sir Keir Starmer met with First Minister of Scotland, John Swinney in July 2024 at Bute House. Photo courtesy of The Scottish Government Like this: Like Related
Powys County Times
06-06-2025
- Business
- Powys County Times
Powys council to consider Home Office asylum seeker deal
Powys County Council is to consider a proposal from the Home Office which would see it get a boost to its housing budget in return for supporting asylum seekers. In a meeting of the cabinet next week, councillors will consider a pilot scheme being proposed by the Home Office which could increase support for the county's housing budget from Government funds. The paper recommends the cabinet puts forward a non-binding 'expression of interest' in the scheme on behalf of Powys County Council along with Carmarthenshire and Monmouthshire, to participate in the Home Office Asylum Dispersal Pilot. The plan would see the council buying or building new homes backed by Government money, then leasing them to the Home Office for 10 years before they return to the council's own estate. The Home Office would 'provide capital funding to Local Authorities to increase accommodation supply (of various types) in the medium-term (next 2-5 years)'. This would be through the 'purchase and renovation, or construction of new homes, including where practical on Local Authority owned land'. The Council would then 'lease the properties, which it would own, to the Home Office at Local Housing Allowance (LHA) rates for a 10-year term', with Powys County Council 'regaining control of the properties after this when Home Office demand should be reducing following the implementation of wider initiatives.' It is thought this model 'will support a net increase' in the Powys County Council's own housing portfolio 'as well as add to the net availability of homes in each area where this model is taken forward'. The paper adds that 'should any new development of homes follow it is anticipated such projects would be funded by the Home Office and not incur costs to the Council but would ultimately lead to an increase in the Council's housing portfolio.' It is thought the plan would relieve one of the large financial pressures on Powys County Council which, the report says, has an estimated a budget gap of more than £60m over the next five years. it would cut the need for high-cost temporary accommodation currently being used for people on the social housing wait list. The boost in housing stock would also allow 'for quicker permanent housing to be offered to those in need of a home' and 'increase council tax revenue through a net increase in the number of homes in the county.' Help support trusted local news Sign up for a digital subscription now: As a digital subscriber you will get Unlimited access to the County Times website Advert-light access Reader rewards Full access to our app The council would also have more of a say where people would be housed with the paper adding the council would be 'in a better position to shape the future design of asylum dispersal, especially in rural areas, as an alternative to having to comply with Home Office directives which may not be so sensitive to local need'. The paper adds that: 'The provision of accommodation and support for asylum seekers and refugees is a complex matter, which to be undertaken equitably and safely benefits from understanding and empathy across communities and neighbourhoods.' It goes on to stress that 'the Council, both officers and members, as an accountable public service, has a role to play in helping dispel rumours and misinformation about such matters and encourage a greater understanding within our communities'.
ITV News
24-04-2025
- Business
- ITV News
London's homelessness crisis poses ‘single biggest risk' to councils, warn leaders
London's homelessness crisis is now the single biggest financial risk facing local authorities, according to a new warning from London Councils. The cross-party group, which represents the capital's 32 boroughs and the City of London, says spiraling temporary accommodation costs have forced councils to overspend by at least £330 million this year, an increase of 60% when compared to original homelessness budgets. Councils are legally required to house eligible homeless residents, making it essentially impossible for councils to place strict limits on their expenditure. The number of Londoners in temporary accommodation is now at a record high, with 183,000 people, around one in every 50 residents, needing shelter. London Councils said the capital's boroughs are collectively spending £4 million a day on temporary housing, often relying on costly hotel placements due to a shortage of affordable homes. Over recent years, 45,000 properties have disappeared from the lower end of London's private rental sector. Grace Williams, Leader of Waltham Forest Council and Housing Lead for London Councils, said: "London councils are facing risk of bankruptcy and homelessness is becoming the biggest risk. "They're spending £330 million overspend on homelessness on top of their housing budget. "It's becoming a real risk of borrowers becoming bankruptcy and therefore having to get into debt to pay for local services for Londoners.' Asked why the situation has become so bad, she said: 'London is like the epicentre of the housing crisis. "56% of all homeless people nationally live in reason homelessness is so bad is a really bad combination of things like massive reductions in the number of landlords that are in London, the fact that housing costs are so high and the lack of home building over a long period..." Cllr Williams told ITV News of the implications of this in her borough. She said: 'In Waltham Forest, we spend 60% of our budget on adult and children's social care and homelessness. That leaves less for all the other services our residents rely on. "If councils go bankrupt, they'll have to borrow more, increasing debt over time.' London Councils is calling for urgent action in the upcoming government Spending Review. Its demands include ending the 14-year freeze on how much councils can claim back for temporary accommodation, making the recent uplift in Local Housing Allowance permanent, and boosting long-term investment in affordable housing. The group is also urging the government to prioritise the cross-departmental strategy on homelessness and ensure councils play a central role. A Ministry for Housing, Communities and Local Government spokesperson said: 'We inherited a serious housing crisis which is why we are taking urgent and decisive action to end homelessness, fix the foundations of local government and drive forward our Plan for Change. 'This government is providing £1 billion for crucial homelessness services and tackling the root causes of homelessness by building 1.5 million new homes, boosting social and affordable housing and abolishing section 21 no fault evictions.'
Yahoo
02-04-2025
- Business
- Yahoo
When will universal credit and PIP benefit payments increase?
Benefits payments will receive a welcome boost on 6 April, as they increase at the start of the financial year. Several benefit payments, including universal credit, will be increased to combat the rising cost of living and inflation. Here's what you need to know about the increases, how much they are, and when they will be paid. Housing benefit Housing benefit is being replaced by universal credit, which will contain the housing element for renters with private landlords. While the standard rate of universal credit is going up, housing benefit rates will be locked in at the current rate until 2026, according to government plans. The Local Housing Allowance (LHA), which calculates housing benefit for private renters, has been frozen since 2020. Research from the homelessness charity Crisis and the campaign group Health Equals indicated that just 2.5% of private rented homes were affordable for renters on housing benefit last year, The Guardian reported. Council tax support Some people are eligible for support and deductions from their council tax bill — including the single-person discount for those living alone. Each threshold for support differs from council to council. Check your council's website for details. Tax credits All tax credits, including working tax credit and child tax credit, will permanently stop on 5 April 2025 as part of the transition to universal credit. These tax credits will now be paid as part of the universal credit payment. Recipients will have received a migration notice and must apply for universal credit before the date specified on the notice to avoid any payment gaps. Universal Credit Universal credit will rise slightly in April by 1.7%, meaning that claimants will get a small boost to their monthly income. The rate for a single person aged 25 or over will rise from £92 a week in 2025/26, and to £106 a week by 2029‑30. For the basic, standard allowance of universal credit, that works out as follows: Single under 25: £311.68 a month to £316.98 a month Single 25 or over: £393.45 a month to £400.14 a month Joint claimants both under 25: £489.23 a month to £497.55 a month Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month PIP After concerns that PIP would be frozen for claimants in the next financial year, the government confirmed in March that PIP payments will also rise by 1.7%, matching September's inflation figure. The standard daily living rate will rise from £72.65 to £73.90, and the enhanced rate from £108.55 to £110.40 per week. For the mobility component, the standard rate will increase from £28.70 per week to £29.20 per week. The upper mobility rate, the enhanced rate, will increase from £75.75 per week to £77.05 per week. ESA Like other working-age benefits, ESA will also rise by 1.7%. A single person's weekly rate will rise from £218.15 to £227.10, and a couple's weekly rate will rise from £332.95 to £346.60. State pension Unlike other benefits, the state pension will increase by 4.1%. This is in line with the triple lock guarantee, which means state pension increases by an amount equal to the highest among three different measures— inflation, the average wage increase and 2.5%. For the full new state pension — for those reaching state pension age after April 2016 — the weekly rate will be £230.25, coming in at £11,973 annually. This amounts to an increase of £472 a year. For those reaching state pension age before April 2016, the new weekly rate is £176.45 a week, accounting for £9,175 a year — an increase of £363 a year. However, concerns have been raised that those on the full new station pension will have to pay tax on it from April 2026 as it will pass the income tax threshold, which currently stands at £12,570. Carer's Allowance If you care for another person for at least 35 hours a week, you can claim carer's allowance. This benefit is rising from £81.90 a week to £83.30. For many benefits, the new rates will take effect from 7 April. However, for some universal credit claimants, increased rates will take effect around June. This is because the new rate won't be paid until the first assessment period that begins on or after 7 April. What's worth bearing in mind is that you don't need to do anything — your benefit payments will automatically increase. The rise in benefits payments are linked to September's inflation figures — which some have argued is unfair. Universal credit is normally increased every April in line with the previous September's consumer price index inflation rate. The consumer price index measures change over time in the prices paid for a basket of goods and services, like food, clothing and housing. In September, this rate dropped to 1.7%, below the Bank of England's target rate of 2% for the first time since April 2021. While this might have been welcome news for shoppers hoping for a drop in food prices, it was bad news for benefits recipients. Even if inflation rose the next month — in October, it reached 2.3% — the benefit increase would still be based on the September rate. Currently, the latest inflation figures sit at 2.8%, down from 3% in January. At the time of the announcement, the Joseph Rowntree Foundation warned that the increase would "barely touch the sides". The charity's senior policy advisor Iain Porter told Yahoo News: 'The consequence of today's rate of inflation is that April's uprating will be worth just a few pounds to most people. 'The basic rate of universal credit is so insufficient it fails to protect families from hardship, and this increase will barely touch the sides.'
