Outline of the Study

This policy paper examines the complex relationship between employment and homelessness in the context of the COVID-19 recession. Drawing on the Centre for Homelessness Impact's Evidence and Gap Maps and international evidence, the paper explores how employment can protect against homelessness whilst recognising that many people lose their homes despite being in work. The paper addresses barriers to employment for people experiencing homelessness, evaluates current interventions, and makes evidence-informed recommendations for policy responses. It distinguishes between support needed for those closer to the labour market who need rapid re-employment versus those with higher support needs who face multiple barriers. The analysis is set against the backdrop of rising unemployment and the UK government's 'Levelling Up' agenda.

Findings in Brief

• 29% of people experiencing homelessness in England were in employment when they became homeless (15% full-time, 14% part-time), highlighting that work alone doesn't guarantee protection from homelessness
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• The percentage of households below the poverty line with someone in paid work rose from 37% in 1994/95 to 58% in 2017/18, demonstrating the growing issue of in-work poverty
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• In London, 4.4% of all children (1 in 23) were living in local authority temporary accommodation at the end of 2019
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• Amongst people sleeping rough in London (Jan-March 2020):
  47% had mental health problems
  41% had drug problems
  37% had alcohol problems
  35% had previously spent time in prison
  Only 23% had none of these issues
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• The Work and Health Programme achieved only 15% job outcomes for participants starting before August 2019, whilst Fair Start Scotland showed 9% sustained employment for 6 months
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• Individual Placement and Support (IPS) showed strong evidence of effectiveness:
  54.5% of IPS participants worked for at least one day versus 27.6% of control group
  Participants were significantly less likely to be hospitalised
  Employment sustainment outcomes were more than twice as lonfg
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• The Fair Chance Fund for young people experiencing homelessness achieved 33% entering employment, with 57% sustaining full-time posts for 13 weeks
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• COVID-19 recession predictions suggest unemployment could peak at 10.1% in 2021 (OBR central scenario) from 3.8% in 2019
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• Job losses from COVID-19 are heavily concentrated in lower-paid occupations: 50% of jobs at risk earn less than £10 per hour
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• Evidence shows personal advisers are critical to employment programme success, with better outcomes when advisers have:
  Small caseloads
  Flexibility to meet individual needs
  Ability to provide intensive, personalised support

• Benefit sanctions do little to enhance motivation for people experiencing homelessness and can push vulnerable people out of the social security safety net
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• Between 40-50% of statutorily homeless households in England and Scotland have no identified support needs

Recommendations in Brief

Core Recommendations:

• Develop 'homelessness employment pathways' - Local authorities should be encouraged and assisted by UK, Scottish and Welsh governments to provide tailored employment advice to anyone receiving statutory homelessness support who wants help gaining employment
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• Incorporate employment support into statutory homelessness guidance - Make employment advice an intrinsic part of personal housing plans
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• Provide specific COVID-19 unemployment support - Focus on helping anyone who has lost their home due to COVID-related unemployment to return to work quickly
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• Implement Individual Placement and Support (IPS) model for people facing greatest barriers to employment, based on strong international evidence
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• Conduct rigorous UK evaluation of IPS for people experiencing homelessness with high support needs to quantify benefits and costs for large-scale implementation

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Operational Recommendations:

• Every person approaching local authorities as homeless or at risk should have access to employment advice if wanted, especially those who recently lost jobs
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• Provide 1-2-1 interviews with employment specialists who can advise on best pathways including mainstream services, Kickstart scheme, or specialist programmes
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• Employ government employment specialists - MHCLG and devolved administrations should each employ specialists to assist local authorities
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• Jobcentre Plus should identify housing risk - Determine if unemployed people approaching them are at risk of losing homes and provide appropriate support
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• Integrate employment with housing support - For those with complex needs, employment support should be integrated with mental health and substance abuse treatment following IPS principles
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• Prioritise support for those without public funds - Give additional priority to people who need employment to gain access to public funds and avoid destitution
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• Commission randomised control trial of IPS in supported housing and Housing First settings, examining wellbeing and repeat homelessness outcomes alongside employment

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Implementation Principles:

• Zero exclusion - All who want to participate should be eligible regardless of distance from labour market
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• Rapid job search - Begin within one month of engagement
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• Follow-on support - Individualised assistance available for as long as needed
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• Client preferences - Influence type of job sought and support offered
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• Avoid coercion - Evidence shows compulsory measures don't work; motivation is key to success
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• Focus on 'good work' - Not just any employment, but work that improves health and wellbeing