Homelessness providers have been forced to give the government back millions of pounds in development grants for new or upgraded hostels.
14% of the £29.7m homelessness change fund has been returned by six providers due to financial uncertainty caused by welfare reforms, local opposition and difficult planning, reports Inside Housing.
Slough YMCA won £661,400 from the HCA to build a hostel on the site of an abandoned petrol station. Colin Young, chief executive, said the charity was unable to raise the additional funds. He said George Osborne’s proposal to cut housing benefit for under-25’s – which isn’t yet government policy – has made it impossible to get loans from banks. The proposed cut would affect the hostel’s income.
A total of 142 beds were lost due to funding being returned.
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