How Finland put housing first

Earlier this year, official figures showed that rough sleeping in England had risen for the sixth successive year.

The data showed that 4,134 people slept on the street in 2016, an increase of 16% on the previous year’s figure of 3,569, and more than double the 2010 figure. Many of those enduring long-term homelessness have complex and multiple needs related to mental health or addiction. While this is a growing problem in the UK, housing exclusion is by no means confined to these shores. As we reported in April, there is growing evidence of an alarming increase in homelessness across Europe.

But one European country is bucking this trend. Since 2008, the Finnish government has been working with housing agencies to reduce long term homelessness and improve prevention services. The adopted approach, called ‘Housing First’, has had a big impact, achieving a 35% fall in long term homelessness over seven years. Finland is now the only country in the European Union where homelessness continues to fall.

Housing First: what it means

Housing First is not a uniquely Finnish approach to tackling homelessness, nor is it a new idea. The practice began in Los Angeles in the 1980s. It’s based on the principle that housing is a basic human right, and turns on its head the notion that vulnerable people are only ‘housing ready’ once they have begun to engage with support services.

As the name suggests, Housing First means providing vulnerable people with permanent, affordable housing, and then offering specialised support to ensure that they don’t return to sleeping on the streets. However, acceptance of that support is not a condition for access to housing. The approach has been adopted in various American cities, as well as parts of Australia, Canada, France and Japan. But it’s in Finland that Housing First has achieved some of its most impressive results.

Housing First: how it works

One of the key players in Finland’s Housing First strategy is the Y-Foundation, an association of local authorities, church, construction, trade union and health organisations that has been supporting homeless people for more than thirty years. Starting in 2008, the foundation converted homeless shelters in Finland’s biggest cities into rental housing. At the same time, the government set targets for local authorities to build new flats in mixed housing developments. The programme is backed by money from government grants and the proceeds from Finland’s not-for-profit gambling monopoly.

Housing First: why it works

The cost estimate for Finland’s Housing First programme is €78 million. But Juha Kaakinen, chief executive of the Y-Foundation, has no doubts about its value for money. In an interview with Inside Housing, he explained:

“It’s not only good social policy; it has a big safety and security angle, as the more homeless people there are on the streets, the more unsafe the city is. And there’s an economic argument, too: taking care of these people is a good investment.”

He estimates that taking each homeless person off the streets saves social, health and emergency services around €15,000 a year.

Housing First in the UK

Homelessness charities in Britain have been taking great interest in the success of Housing First in Finland.

“It’s a stunning result,” Matt Downie, director of policy and external affairs at Crisis, told Inside Housing.  “They used to have a bigger homelessness problem than we have.” But he was less sure whether the programme could be replicated here. “We’ve got a system that is the exact opposite of Housing First. In Finland they made a strategic choice; that allowed them to change everything.”

Even so, Housing First is already gaining ground around the UK:

Scotland
A pilot project in Glasgow by Turning Point Scotland was the first Housing First project to be implemented in the UK. Between 2011 and 2013, the project provided mainstream social housing and 24/7 floating support to 22 individuals who were homeless, aged 18 or over, and involved in substance misuse. An evaluation of the project by Heriot Watt University found that none of the tenants were evicted from their flat and the majority of participants retained their tenancies.

Wales
The Welsh Government has announced that it is considering moves towards a Housing First policy. The communities and children secretary for Wales told the Welsh Assembly in April 2017 that he would be reviewing homelessness prevention in Wales, and is exploring Housing First initiatives.

Northern Ireland
Working with the Depaul youth homelessness charity, the Northern Ireland Housing Executive funded a Housing First pilot scheme in Belfast. An evaluation of the 18-month programme reported a number of positive results, including a high rate of tenancy retention, improvements in participants’ self-care, confidence and living skills, and reductions in their dependence on drugs and alcohol. A further Housing First programme has since been established in Derry.

England
In 2015, the University of York published findings from a study of nine Housing First services in England. The authors reported high levels of success in reducing long-term and repeated homelessness, with 74% of service users successfully housed for one year or more. There were also significant improvements in the physical and mental health of Housing First tenants and high levels of satisfaction. The Centre for Social Justice has called on the UK government to set up a £110m national Housing First programme, arguing that the investment would save money and lives.

Final thoughts

There is no quick fix to the problem of homelessness, but Finland has shown that adopting new ways of thinking about the problem can virtually eradicate rough sleeping. As Juha Kaakinen observes:

“Housing First means ending homelessness instead of managing it.”



Further reading on homelessness:

Basic Income – a simple solution to a complex problem?

By Heather Cameron

If you want to incentivise work at every level of income then Basic Income is simply the best system.” (RSA, 2015)

Last month MPs in the UK Parliament were asked to consider the question of introducing a universal basic income to be payable unconditionally to all citizens without means-testing or work requirement.

The motion, which was tabled by Green Party MP Caroline Lucas, says the policy “has the potential to offer genuine social security to all while boosting entrepreneurialism”.

While no vote was taken on the policy, and it is unlikely to be made law any time soon, the motion raised the profile of the issue by enabling MPs to add their name in support.

And with ever increasing global interest in the idea, and basic income pilots set to spring into action all over Europe this year, perhaps it’s not as far away from becoming a reality in the UK as we may think.

Pilots

A number of cities and countries across Europe have committed to trialling a basic income.

Last year Finland announced a national basic income experiment, scheduled to start in 2017, which will be the EU’s first nation-wide project. It will see up to 100,000 Finnish citizens paid an unconditional income for a period of two years, after which the results will be analysed to see whether it should be rolled out nationally.

Trials have also begun in the Netherlands. The Dutch city of Utrecht will pay a small group of benefits claimants, whether they work or not, a basic income of £660 a month to provide a basic standard of living and help them avoid the ‘poverty trap’.

In Switzerland, a national referendum on a basic income is planned for this year, and support for the idea has also been reported in France and Canada.

While it is too early to tell whether these pilots will have the desired positive effect, the concept of a basic income is far from new and there have been signs of success from past experiments.

Positive outcomes

In the 1970s, a basic income social experiment, ‘Mincome’, was carried out in the Canadian town of Dauphin, which involved making payments to the entire population, relative to income to cover basic living costs. The programme succeeded in reducing poverty, improving health and alleviating other urban problems.

More recent basic income projects in developing countries have also helped alleviate poverty. In Namibia, a coalition of aid organisations trialled a basic income, funded through tax revenues, of 100 Namibian dollars to each citizen. The result: crime was reduced, children attended school and many villagers used the money to fund micro-enterprises. Meanwhile, in Uganda, a similar programme increased business assets by 57%, work hours by 17% and earnings by 38%.

Critics of such a system say that it would cost the state too much money, and would lead to welfare dependency and a reluctance to work, ultimately resulting in higher unemployment.

A recent survey undertaken in Switzerland would seem to refute this. It indicates that only a very small proportion of the population would stop working if they had a basic income and a majority believe that it would “relieve people from existential fears.”

Similarly, the Canadian experiment found no substantial difference in either female or male unemployment. There were changes in the labour market, as would be expected, with a reduction in working hours within families as a whole. Female spouses reduced their working hours to spend more time with children; and hours were reduced for adolescents within the family who entered the workforce later, suggesting that they were able to stay in education longer.

Way forward for the UK?

The Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) has recently concluded that there is a strong practical case for basic income in the UK to replace the current tax and benefits system – “it underpins security, replaces the complexity of the current system, and provides a platform for freedom and creativity.”

The RSA report sets out a potential basic income model for the UK. It would provide a universal payment to every citizen, (with restrictions for migrants and those serving custodial sentences). A ‘basic’ amount paid to everyone of working age would provide incentives to work, therefore mitigating against low pay traps of the current system. It would also, the RSA report claims, mitigate against some of the negative distributive effects of basic income schemes by redistributing from higher earners to families with children.

The report calculates household income, comparing the proposed model with the current system of likely Universal Credit/National Living Wage income for 2020/21. In all instances, ranging from single parent families with children under or over five to couples with children under or over five, there was a gain for household income under the basic income model.

With the current welfare system and all its complexity, the new Universal Credit apparently not doing what it’s supposed to and the continued increase in job automation, is this really just a simple solution to a complex problem?

Perhaps by the end of 2016, there will be more evidence for the UK to seriously consider.


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Further reading: if you liked this blog post, you might also like:

Increasing participation in sport and physical activity

by Stacey Dingwall

Our latest member briefing focuses on increasing participation in sport and physical activity in the UK, looking at successful examples of increasing activity and ways in which policymakers are trying to overcome the barriers to participation in sport and physical exercise. You can download the briefing for free from the Knowledge Exchange publications page.

Physical activity levels in the UK

Despite the longstanding and valued position in British society of sport, getting people of all ages involved in sport and physical activity has become increasingly challenging. While current UK guidelines for aerobic activity recommend that adults aged 19 and over should spend at least 150 minutes per week in moderately intensive physical activity, the latest statistics on physical activity from the British Heart Foundation indicate that:

  • Only 67% of men in England and Scotland report meeting recommended levels of physical activity, and only 59% in Northern Ireland and 37% in Wales;
  • Women are less active than men in all UK countries, with 58% reporting meeting recommended levels in Scotland, 55% in England, and 49% in Northern Ireland and 23% in Wales;
  • Physical activity levels vary by household income; in England in 2012, 76% of men in the highest income quintile reached recommended levels, compared to 55% of men in the lowest income quintile.

The implications of inactivity

Low levels of physical activity not only have health implications, but also economic – in the UK, inactivity has been estimated to cost the NHS £1.1billion (Allender, 2007) with indirect costs to society bringing this cost to a total of £8.2billion.

Government action

Our briefing highlights the range of policies and interventions implemented by the UK and devolved governments to try and increase participation in sport and physical activity among the population. These include the Department of Education’s £150m per year Primary PE and Sport Premium Fund; and Scotland’s sport strategy for children and young people, Giving Children and Young People a Sporting Chance.

Good practice – home and abroad

In addition, the briefing profiles successful interventions at the community level, such as Let’s Get Fizzical, a physical activity programme for young people delivered by StreetGames in collaboration with Birmingham City Council. International examples of good practice are also highlighted, including the Active Healthy Kids Canada programme and the North Karelia Project in Finland.


 

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