New Data Reveals Social Housing Residents Facing Increased Economic Hardship Due to Covid-19

Community, Health and Social Care
  • 94% of Housing Associations reported an increase in residents facing economic hardship, whilst 66% reported increase in residents receiving housing benefit as a result of Covid-19
  • New figures show that Housing Associations provided an estimated £76 million to community investment in 2019-20, a £6 million increase from 2018

 

A new report exploring the impact of Covid-19 on employment support delivered by the social housing sector has found that 94% of housing associations reported an increase in the number of residents facing economic hardship since March 2020, suggesting that those who were financially vulnerable before the pandemic hit are being hit hard, and falling further behind.

While job support schemes and benefit increases have been put in place by the Government in response to the pandemic, data suggests these initiatives are not enough to protect all those who need them most. Analysis of the survey results found:

 

  • 88% of housing associations reported an increase in the number of tenants reaching out for support with their finances since March 2020.
  • 81% of housing associations have seen the number of tenants reaching out for rent support increase since March 2020.
  • 69% of housing associations reported an increase the number of tenants reaching out for employment support since March 2020.
  • 66% of housing associations have seen the number of tenants on housing benefit increase since March 2020.

 

The report also revealed that despite the national challenges, the social housing sector’s investment in employment support remains strong, with an estimated £76 million in community investment provided by housing associations in the 2019-20 financial year. These findings mark a £6 million increase since 2018, when the sector was estimated to invest £70 million.

The report was produced by Communities that Work, the only national housing industry body dedicated solely to the employment agenda. The organisation received contributions from 32 housing associations, who collectively own and manage more than one million social housing homes across England and Wales.

 

Lord Kerslake, Chair of Peabody and former head of the civil service, commented on the report’s findings:

“This report emphasises that the support services provided by the social housing sector have an absolutely critical role in helping those hardest hit by the pandemic and in the recovery. While the £76 million community investment from the sector is significant, the relationships housing providers build with residents and local partners is invaluable in creating opportunities and helping people secure employment. Using the remaining ESF Match funds to amplify the sector’s value and its ability to invest back into local communities can help make the social housing sector a catalyst for economic recovery.”

 

Lynsey Sweeney, Managing Director of Communities that Work, said:

“With 94% of HAs seeing an increase in the number of residents facing economic hardship and an increase in demand for support services across the board, this report makes clear how vital the social housing sector’s estimated £76 million contribution is to helping people achieve employment and a sound financial footing. What’s critical about the sector’s support is that it drives economic growth by including the vulnerable, and addressing local labour market needs. More could be done now with better use of ESF Match funds, held in reserve, to support those most in need of employment support. This kind of smart, inclusive growth is fundamental to our economic rebuilding.”

 

Kate Henderson, Chief Executive of the National Housing Federation, said:

“In this challenging climate housing associations recognise the vital importance of supporting their residents holistically and remain committed to investing in their communities. They continue working closely with local partners to provide employment opportunities, training, advice, and guidance to help people back into work.

With the number of residents requiring this kind of support increasing by 94% since the pandemic, we urge the Government to use the upcoming budget announcement to ensure funding certainty for employment programmes and services and put housing at the heart of the UK Shared Prosperity Fund pilots.”

 

Chyrel Brown, Chief Operating Officer of One Housing, commented:

“The increase in financial hardship among social housing residents since the start of Covid-19 underlines how important it is to make sure residents have access to the support services they need during and after the pandemic. While the report found that 94% of housing associations were able to shift support services from in-person to digital delivery, it also rightly noted that this forced reliance on the digital world creates obstacles for residents as some don’t have access to the broadband, tech or skills needed to get online. We support the report’s recommendation calling on the Government to close the digital divide, which will help support residents through the pandemic and long after.”

To read the full report, please visit communitiesthatwork.co.uk/publications.