Home Property£23 million in social and economic upside at risk without urgent government support, warns G15

£23 million in social and economic upside at risk without urgent government support, warns G15

by Seamus Doherty Property Reporter
12th Nov 24 10:50 am

The G15, a group of London’s largest not-for-profit housing associations, has warned that vital community schemes that provide important services to their residents and plug the gaps in state services, including employment programmes, food security initiatives and financial guidance, are at threat without urgent action from the Government.

As providers of below-market rent social and affordable homes, G15 members play a vital, often unrecognised, role in supporting vulnerable residents, volunteering to provide services that directly benefit tens of thousands of Londoners.

In the last year these schemes alone created £23 million in ‘social value’ – a measure of the broader benefits to individuals, communities, and society – for residents, London and the UK. Teams from G15 members provided 67 money guidance projects and 75 food security initiatives, which collectively supported 32,000 people. Additionally, employment and skills programmes run by G15 members have helped over 60,000 residents into work and training since 2017 – with more than 55,000 of these supported by Clarion Futures, the charitable foundation of Clarion Housing Group – transforming lives and contributing to London’s wider economy.

Many of these services were once provided by the state, but decades of cuts to services and community support programmes have seen not-for-profit housing associations stepping in to fill critical gaps. Despite the immense benefits, this significant contribution sometimes goes unacknowledged by the Government and wider society.

The threat has come to light in a new report – “Room to Grow: Supporting London’s Communities” – at a time when London’s Housing Associations are grappling with various financial pressures following years of political and economic instability. Climbing costs to upgrade existing homes and comply with regulation, new costs like an increased NI bill to the tune of millions after the Budget, and the lack of a stable investment environment through a rent settlement have meant the development of new Housing Association homes are grinding to a halt just as the Government targets a surge in housebuilding to address the housing crisis.

“Not-for-profit housing associations are proud to play an essential role in the lives and communities of our residents, creating room to grow whether helping with skills and employment opportunities, financial education, healthcare support and so on” said Fiona Fletcher-Smith, Chair of the G15.

“Without targeted Government support, we face an impossible dilemma: we cannot continue to provide the critical services our residents rely on while delivering the affordable and social homes that are key to solving London and the UK’s housing crisis.”

More than just a safe, affordable roof over residents’ heads

The report includes powerful examples of the life-changing work done by G15 members, such as Peabody’s Hospital Discharge Services in Hackney, The Guinness Partnership’s collaboration with the Rio Ferdinand Foundation and Clarion Futures’ jobs and training programme.

Peabody’s Hospital Discharge Services – Lowri House

Peabody’s Lowri House exemplifies the transformative impact of housing associations on individuals and public services. Commissioned by the London Borough of Hackney, Lowri House provides a safe and comfortable home for people who are ready to be discharged from hospital but are experiencing homelessness.

This initiative not only provides vital support for individuals but also alleviates pressure on the NHS by freeing up hospital beds. With an average saving of £600 per night per bed, Peabody’s services have saved the NHS approximately £3.3 million since 2017.

Clarion Futures’ jobs and training programme

Clarion Futures runs one of the biggest jobs and training programmes in the country, helping thousands of people into work each year.

The service is free to all Clarion residents and people living in its communities. It provides tailored support to anyone looking for a job, whether they’re taking the first step onto the career ladder or hoping to return to work after time out of the labour market.

Clarion Futures works with more than 200 employers, including the likes of the NHS, Transport for London, OCS, Galliford Try, Pret A Manger, and TSS Security, to source the right job opportunities for its residents.

In South London, The Guinness Partnership empowered young people through its collaboration with the Rio Ferdinand Foundation. The initiative engaged young people aged under 25 in weekly activities that build employability and life skills.

The programme delivered extraordinary outcomes with participants training with high-profile organisations such as Warner Music UK.

These success stories underscore the unique and invaluable role not-for-profit housing associations play in providing essential services and creating opportunities for vulnerable residents.

After fifteen years of underinvestment, the G15 is calling for a decade-long rent settlement to provide the financial stability necessary for future projects. Without this stability, and without clarity on accessing the Building Safety Fund or a rent convergence mechanism, not-for-profit housing associations cannot effectively balance their dual roles of supporting existing residents and supporting the Government’s ambitious plans to build the 1.5 million homes urgently needed.

“London’s housing crisis demands bold action,” Fletcher-Smith concluded. “The Government must acknowledge the vital role we play and provide the support needed to ensure we can continue to serve our residents while delivering the homes London desperately needs.”

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