Our Cost Benefit Analysis of Local Welfare Assistance and Furnished Tenancies report reveals that helping people to access essential furniture and appliances saves the Government significant sums of money.
The research shows that for every pound spent on local authority crisis support schemes, over £14 is saved by the wider public purse, and every pound spent on social housing furnished tenancy schemes, saves over double the investment.
These savings are across the NHS, criminal justice and the Department for Work and Pensions, amongst other public services. Local authorities make substantial savings from local welfare schemes too, with an average of £11 of savings for every pound invested.
Claire Donovan, Head of Policy at End Furniture Poverty, said: “We know that ending furniture poverty is the right thing to do, to stop children having to sleep on the floor and to ensure families have fridges and cookers to safely store and prepare fresh food – now this research shows that it makes good fiscal sense too.”
We commissioned Local Partnerships to carry out the research, an in-house public sector consultancy, jointly owned by the Local Government Association, HM Treasury and Welsh Government. They worked with two local authority local welfare schemes, Liverpool Citizen Support Scheme and Cambridgeshire Local Assistance Scheme, and two social housing providers, North Tyneside Council and Onward Homes, to provide the data for the cost benefit model.
The modelling works by using established studies such as HM Treasury Green Book and the New Economy Manchester Model to calculate the cost savings of the wider benefits, such as improved health and wellbeing, reduction in demand for homelessness support and temporary accommodation, and more sustained tenancies.
Claire said: “We understand that the Government is facing significant financial challenges, so we wanted to be able to prove the value of investing in ending furniture poverty with specific figures. We are also able to show the savings to local authorities with reduced demand in homelessness presentations, temporary accommodation and social services support, leading to specific savings.
“We hope the Government has the vision to see these longer-term savings mean investment now is vital.”
Only 2% of social homes are provided as furnished and yet 26% of social housing tenants live in furniture poverty, with 8% living in ‘deep furniture poverty’, without three or more essential items.
The model shows that North Tyneside’s furnished tenancy scheme is cost neutral for them, but previous research conducted by End Furniture Poverty has shown extensive savings for landlords through reduced rental arrears and void costs, and increased tenancy sustainability.
For those fleeing domestic abuse, coming from homelessness, or moving out of temporary accommodation, they are likely to have nothing so moving them into an empty box is a terrible start to a new tenancy and makes them far less likely to be able to move on with their lives.
End Furniture Poverty is campaigning for at least 10% of social homes to be provided as furnished and believes the Government should consider legislation if landlords are slow to respond.
Claire explained: “We have worked with our partners in FRC to create Furniture Flex, a furniture rental scheme that requires no capital outlay from social landlords, and while we know that furnished tenancies are primarily for those on benefits, and we support the government’s ambitions to help more people back into employment, moving people into empty boxes, is not the right way to achieve this.
“People need safe, secure and furnished homes to help them back onto their feet. With a rental scheme, they can return items and remove the service charge if and when that happens. And there are some groups, such as pensioners and those with disabilities, who will always need help.”
We welcome the news of a further extension to the Household Support Fund and hope the guidance can be amended so that the current 1% spend on furniture and appliances is greatly increased. But a long-term future for local authority discretionary crisis support is vital, as even with planned reforms to the Welfare state, crisis support will always be necessary to help people through unexpected difficulties.
If you would like to discuss the report or ask any questions, please email info@endfurniturepoverty.org
Read the full report below.
