A number of uncosted benefits were identified including:

• improved quality of life for the individual,
• Increased ability to participate in the community,
• Decreased fear of crime and easier access to appropriate services. (1)

Individual scenarios

• Individual experiences may be very different but through looking at 6 different homelessness scenarios Crisis found that the cost ranged between £4,500 to a staggering £83,000 per individual scenario. In addition to the issues identified above there they found costs to the health service of treating serious injury or illness (both physical and mental), including the cost of drug rehabilitation and the cost of temporary accommodation. (2)

Foyers

• Foyers support young people to develop skills and access training to move towards independent living. In 2003 111 foyers provided 4,630 bed spaces. Housing Corporation evaluations found them fit for purpose, value for money and providing a much needed local resource. The average foyer place costs £303 per week, compared to £3,168 in a Secure Training Centre, £3,380 in a Secure Children’s Home and £976 in a Young Offender Institution. If all foyer users were to be accommodated in Young Offenders institutions this would cost an additional £34,996 per user and a total of £162,031,480 per year. (3)

Unemployment

• OSW has calculated that the cost to government of an unemployed person staying in a hostel is approximately £15,500 per year. If adequate support and move-on accommodation is offered people will be able to come off benefits and become net contributors to the economy. (4)

Tenancy sustainment

• In areas where support by tenancy Sustainment and floating support teams operate, the levels of tenancy failure are greatly reduced, which can bring a significant saving. (5) The Audit Commission estimated in 1998 that a failed tenancy would cost a housing authority approximately $2,100. (6) Drawing on this research Crisis 2003 study found that the cost for different individuals would range between £1,600 and £4,210. (7)

Move-on

• There is a high cost to the public purse of keeping people in hostels when they no longer need to be there. The MAP project found that £31 million was spent across the North London sub region on services for people who are overstaying and blocking throughput. They found that even assuming that people moving on may need some continuing low level support in their new homes, nearly £23 million were wasted each year. (8)

Supporting ex-offenders

• Adequate support and housing for ex-offenders is likely to reduce reconviction rates and save on criminal justice cost as the below case study indicates.

Bill is 29 and lives in Newcastle. He had a history of care and left school early. He spent 11 years in a chaotic cycle of prison and homelessness, including rough sleeping, using drugs and drinking heavily. Over ten years Bill had 17 convictions relating to 55 offences, including an offence against the person, theft and related offences and a drug offence.

His health got worse, but was reluctant to access services. In 2005 he had three life threatening admissions to intensive care within a fortnight. He had hit rock bottom and contemplated suicide. Instead something happened. He entered Carr Gomm's supported housing project in Newcastle. Now he is clean of drugs, has stopped committing crime and has re-established contact with his family. A year on Bill is still clean of drugs. He has a new relationship with a girlfriend. He is volunteering and helping others and starting to apply for jobs.

In the time before Bill found the support he needed to make a difference he cost public funds an estimated £450,000 to the criminal justice system alone. His supported accommodation and other support services is estimated to cost £15,000 a year. The difference in Bill's life is priceless.

The estimated costings in the case study were developed by Cassiopeia Consultancy