NIHE warns that budget cuts will hit those most in need

The Housing Executive has warned about proposed budget cuts.
The Housing Executive has warned about proposed budget cuts.

The Housing Executive has warned that proposed budget cuts in homelessness prevention, the new build programme and home energy grants will impact households in most need in Northern Ireland. 

The Housing Executive has warned that proposed budget cuts to homelessness prevention, the new build programme and home energy grants will impact households in most need in Northern Ireland.

In its response to the Department for Communities’ Budget 2023/4 Equality Impact Assessment, the organisation has set out its concerns about the funding challenges for a number of programmes and services. 

Grainia Long, Chief Executive said: 

“At a time when we need to be building more homes, preventing homelessness and helping those experiencing fuel poverty, the proposed budget would result in substantially fewer social homes started than originally planned for next year, an increase in people needing temporary accommodation and the effective suspension of the boiler replacement scheme.

“The funding challenge outlined in the draft budget comes at a time when the cost of living crisis is continuing to impact on many households across Northern Ireland. 

"As housing professionals we are concerned about the impact that the proposed budget cuts will have across society but specifically on those individuals who need our help most: people with disabilities; young people leaving care; the increasing number of young women presenting as homeless; households in rural areas; those in fuel poverty; and vulnerable groups, including older people. 

“While the proposed draft budget comes at a time of unprecedented levels of homelessness, the indicative funding of £26.4m for homeless services equates to a shortfall of £7.4m. As a consequence, it will be virtually impossible to provide services to prevent homelessness, with the overwhelming proportion of the homelessness budget focused on response. 

"Perversely, failure to fund prevention services, will lead to greater numbers living in expensive temporary accommodation, leading to greater budgetary pressures.  We are extremely concerned that failure to fund homelessness services will lead to job losses in the voluntary and community sectors. 

“The proposed budget will also have a significant detrimental effect on the social housing new build programme, when demand for housing is at a record high. A funding requirement of £199.5m has been identified in order to target 2,000 new social housing starts in 2023/24, to meet housing need.  

"A funding allocation of between £141.6m and £159m budget is likely.  Either scenario will result in substantially fewer homes being built in 2023/4 than originally planned. This means that more households will be waiting longer to have permanent housing offered to them.

“We are concerned about the levels of funding proposed for the forthcoming year for energy efficiency programmes tackling fuel poverty across Northern Ireland. 

"A shortfall of £2m in the Affordable Warmth scheme will curtail this improvement programme and the indicative funding of £148k of the Boiler Replacement scheme effectively closes the scheme to new applicants this year. 

“In addition, the budget outlined in the EQIA does not allow for the high cost of goods and materials, contingency planning for emergency situations, such as a Covid-19 outbreak or cold snaps during the winter.  Furthermore, it does not enable us to meet additional numbers presenting as homeless following positive ‘leave to remain’ decisions.  

"The outlined budget in the EQIA and other departments’ current budget announcements will also have a negative impact on the much-needed collaboration across sections such as health, education and justice as well as with partners in the housing sector. 

“We have been working closely with the Department of Communities to set out the impact of the budget reductions proposed and today published our response to their EQIA. 

"We will of course work to minimise any disruption to services and programmes of work, however, it is our view that the proposed expenditure as it stands will have an adverse impact on the most vulnerable people across Northern Ireland, who are urgently in need of housing services.”