The government must urgently provide support for tenants in rental arrears to prevent homelessness MPs on the Housing, Communities and Local Government Committee have warned.

Instead of “repeated, last minute extensions to the ban on evictions”, ministers must come up with a clear exit plan to help the rental sector emerge from lockdown the report says.

The committee says that by footing the £200-£300m bill for tenants’ arrears, the government would avoid the need for significant additional spending on homelessness.

The report praises the efforts of all involved in ensuring the “Everyone In” strategy to get rough sleepers off the streets and into accommodation during the early months of the pandemic. 

However, it says that after the initial success it became too easy for people to fall through the gaps. 

People with no recourse to public funds due to their immigration status were not always being given the support they needed.

The MPs say the government did not have a good enough understanding of how many people were being left out due to poor data collection.

The report calls on the government to clarify the legal powers of local authorities to support all rough sleepers and homeless people during public health crises and to ensure nobody falls through the gaps. 

It calls for the government to establish a taskforce to specifically address the impact of “no recourse to public funds” on homelessness, or it risks failing to meet its manifesto pledge to end rough sleeping by 2024.

Housing, Communities and Local Government Committee chair Clive Betts MP says

“It is just over a year since the pandemic transformed our lives. 

“In that time the government has done great work, alongside partners in local government, healthcare and the charity sector, to ensure that rough sleepers were kept off the streets.

“However, cracks are beginning to show in this strategy and people are being allowed to fall through the gaps.

“Individuals with no recourse to public funds due to their immigration status need to be helped, especially during a national health emergency. 

“Relying on charities to step in is not good enough. 

“The government needs to be clear with local authorities on their responsibilities, and provide sufficient funding to support them.”

He adds: “The ongoing crisis of rent arrears in the private rented sector is deeply concerning. 

“The economic consequences of the pandemic could be long-lasting and become even more severe. 

“The ban on evictions has ensured that people remain in their homes for now, but the debt will continue to increase. 

“Landlords, many of whom only own one or two properties, will also be struggling with a loss of income.

“The government will have to find a solution that is workable for tenants and fair for landlords. 

“The gravity of the situation means it should be treated just the same as other sectors of the economy and society that have a clear roadmap out of lockdown. 

“§Helping tenants pay their rent arrears would come at a cost, but would ultimately prevent significant expenditure on homelessness assistance further down the line.”