Homeless services ‘may have to close doors if energy support does not continue’

Homelessness organisations may be forced to close their doors “with consequences which would cost lives” if energy support is not continued beyond March, more than 30 groups have warned.

Homeless services are growing increasingly concerned about the prospect of support from the Energy Bill Relief Scheme (EBRS) ending in four months, Business Secretary Grant Shapps has been told.

An open letter, co-ordinated by Homeless Link and signed by 32 groups including Shelter and St Mungo’s, says services are already cutting costs and scaling back support as inflation rises and donations drop off.

On average, services predict a 141% increase in their energy costs in 2023/24 if they do not continue to receive the EBRS after March.

Even if support continues at a lower level the impact would remain extreme, the groups believe.

It is clear that failure to extend the EBRS would be devastating, with unsustainable costs forcing many homelessness organisations to scale back their work even further, and in some cases, forcing them to close their doors all together

The Government is reportedly considering plans to keep energy bill support in place for all UK companies but at a less generous level, according to the Financial Times.

In November, Chancellor Jeremy Hunt said the Government will have to target support only at the most vulnerable industries and will likely also have to lower the aid they receive, with the estimated costs seen as unsustainable.

In the letter, the groups write: “It is clear that failure to extend the EBRS would be devastating, with unsustainable costs forcing many homelessness organisations to scale back their work even further, and in some cases, forcing them to close their doors all together.

“This would mean fewer bed spaces and support options available for the increasing number of people experiencing homelessness, with consequences which would cost lives and continue to be felt for years down the line.”

One provider of accommodation for homeless people said its annual energy bill is predicted to rise from £50,000 to £125,000 if support stops next spring.

It said it has “already given notice on three two-bedroom properties” due to rising costs and warned: “If prices continue to rise, we’ll be scaling down as a charity,” resulting in “evictions” and “anything up to 70 people being made homeless”.

Homeless Link chief executive Rick Henderson said energy bills support has been a “lifeline” for homelessness services, which are mainly funded by councils, with budgets agreed before inflation started spiralling.

“But there is deep concern in the homelessness sector of this support coming to an end in just a matter of months,” he said.

“Having to shoulder hugely inflated energy costs will force services to scale back their work or even close their doors all together.

“This warning comes at a time when all indicators show levels of homelessness are on the rise, with the very real fear that people experiencing homelessness won’t have safe, trusted support to turn to if the Government pulls the plug on the EBRS scheme.”