St Albans homelessness funding set to increase by £1 million
It follows a projected £2.1 million overspend during the current financial year on temporary housing for the homeless
Funding for accommodation to support homeless people in St Albans is expected to increase by £1 million next year.
St Albans City & District Council has revealed that initial budgeting projections for 2026/27 indicate a significant rise in funding may be required to help meet statutory responsibilities related to homelessness.
Linda Parker, the council's assistant director for finance, said her team is currently "modelling" the homelessness budget figures to determine future needs.
She pointed to "early assumptions" suggesting not just an additional £1 million for accommodation but also more resources for staff.
This move follows a projected £2.1 million overspend during the current financial year on temporary housing for the homeless.
Council dealing with significant financial challenges
Addressing a committee on 10th November, Ms Parker highlighted the financial strains the council faces this year, stating:
“The council continues to operate under challenging financial conditions, both in managing the current financial year and in preparing the budget for next year.
“In-year pressures remain significant, with statutory homelessness responsibilities being the primary driver of our forecast overspend."
According to Ms Parker, recent measures are beginning to make a positive impact.
She noted that as of last Thursday, the number of homelessness cases in the district had reduced to 212, with 59 people in hotel accommodation.
This marks an improvement from September, when the figures were 235 and 88, respectively.
Despite efforts to keep the budget under control, the council's general fund, which encompasses core spending such as temporary accommodation, is set to exceed its budget by around £200,000 this year.
Earmarked reserves, contingency budgets, and underspends in other departments have helped reduce the overspend to this level.
Looking ahead to 2026/27
Looking forward, Ms Parker acknowledged a high level of uncertainty, with much depending on the Fair Funding Review's outcome, which will determine the level of government support.
At present, the council must identify £0.5 million in savings.
Proposals being considered include increasing car parking fees and transferring responsibility for managing certain public toilets to local parish councils.
Ms Parker also underlined plans to bolster the council's reserves, which currently stand at around £2.8 million, to protect against unexpected financial pressures.
“The reserve is essential to safeguard the council against unforeseen and unpredictable events and act as a buffer against financial shocks, such as the sudden rise in the cost of homelessness that we’ve experienced this year,” Ms Parker said.
Further budget proposals are expected to be revealed later this month, ahead of the final budget being agreed in February 2024.