Hidden Homeless: employed Australians accessing specialist services, rental assistance not enough

Rent assistance leaves half its participants in rental stress because it has not been raised with soaring rents.
Only one in three people on the JobSeeker payment is eligible for the payment.
Those on the lowest incomes are showing up to Specialist Homelessness Services in the private market.

New data shows that amid increasing housing stress, the spend on rent assistance is just $4.9 billion per year, and social housing and homelessness services combined is at $1.6 billion – not enough to scratch the surface of solving an urgent public health issue. Those in the lowest income brackets are facing homelessness, and specialist services can help less than half of applicants into housing.

The release of two important papers: the Productivity Commission’s 2023 Report on Government Services (part G Housing and Homelessness), and Anglicare Australia’s Reforming Rent Assistance 2023 Paper; demonstrates the increasing levels of housing stress, with rents in capital cities reaching record highs and more Australians joining the homeless.

Statistics from the Productivity Commission’s report show about 44 per cent of households receiving the rental assistance supplement were paying more than 30 per cent of their income on rent, and therefore under rental stress.

Further to that, the Productivity Commission’s report shows that an increasing proportion of those who are accessing homelessness services, are employed. This coincides with inflation rapidly outpacing wage growth and housing becoming increasingly unaffordable, both to buy and to rent.

Anglicare Australia’s paper explores how and whether Commonwealth Rent Assistance is delivering on its aim, to ‘alleviate rental stress for people on the lowest incomes’.

Their analysis showed that:

The payment leaves one in two of its participants in rental stress because it has not been raised as rents have soared,
The payment excludes those on the lowest incomes. For example, only one in three people on the JobSeeker payment is eligible for the payment.

National spokesperson for Everybody’s Home Maiy Azize says the payment must be reformed. “It has been decades since there was a real boost to rent assistance. At the moment, the maximum fortnightly payment a single person can receive is $151.60.”

The Hidden Homeless

According to the Australian Institute of Health and Welfare, the number of Australians who sought and received Specialist Homelessness Services (SHS) in 2021-2022 is 272,700.

But not everyone who needed assistance received it, or received assistance in time to prevent long periods of homelessness.

The Productivity Commission’s report shows that well below half of homeless Australians who applied to social housing services were successfully assisted into housing in 2021/2022 in each state and territory:

NEW SOUTH WALES: One-quarter (25 per cent) of clients who were homeless were assisted into housing.
VICTORIA: Around one-third (29 per cent) of clients who were homeless were assisted into housing.
QUEENSLAND: One-third (33 per cent) of clients who were homeless were assisted into housing.
WESTERN AUSTRALIA: Just less than one-quarter (24 per cent) of clients who were homeless were assisted into housing.
SOUTH AUSTRALIA: Just under half (49 per cent) of clients who were homeless were assisted into housing.
TASMANIA 2 in 5 (40 per cent) clients who were homeless were assisted into housing.
ACT Around one-third (36 per cent) of clients who were homeless were assisted into housing.
NORTHERN TERRITORY One-quarter (25 per cent) of clients who were homeless were assisted into housing.

More funds are needed for the existing SHS agencies and services, say The Council of Capital City Lord Mayors, including the Chief Minister of the ACT.

CCCLM Chair, Lord Mayor of Melbourne, Sally Capp said “Homelessness in our capital cities has been increasing significantly since 2001, and capital city Lord Mayors have long called for increased investment in social and affordable housing, along with a review of the Commonwealth Rent Assistance.

“These reports highlight the need for urgent action – Commonwealth Rent Assistance is simply not keeping up with rising rental prices”.

“The Federal Government should increase Commonwealth Rent Assistance so people on the lowest income levels can afford the basic costs of housing in the private rental market” she said.

Commonwealth housing a relic

Anglicare points out that between the 1940’s and the 1970’s, Australian governments built around 23 percent of all new homes as its main policy response for housing affordability.

This changed in the 1980’s and 1990’s, when the Federal Government began relying on the private market to deliver homes, and social housing was reserved for those in dire or special circumstances.

Instead of supplying housing, the Federal Government began offering ‘demand-side’ assistance to the private market, including first-home buyer grants, and tax concessions for landlords, and Commonwealth Rent Assistance to ease the financial stress of renting for those on those on low incomes.

Part of the justification for moving to demand-side assistance was to reduce the cost to Government in delivering housing. Yet Federal Government funding for Commonwealth Rent Assistance ($4.9 billion in 2021-22) now far outstrips the combined funding it provides for both social housing and homelessness services, which in 2021-22 was at $1.6 billion.

Homelessness a public health issue

Mission Australia says: “Realistically in Australia, most people experiencing homelessness are hidden from sight. They could be sleeping in a car, couch surfing or enduring the night on public buses. They may have shelter but no permanent place to make a home. These are the ‘hidden homeless’.”

Specialist Homelessness Services (SHS) state: “safe, secure housing is fundamental to people’s health and wellbeing. Homelessness can profoundly affect a person’s mental and physical health, their education and employment opportunities, and their ability to fully participate in society.”

According to Mission Australia:

There are over 116,000 people experiencing homelessness on any given night,
Only seven percent of people who are homeless sleep on the streets,
Domestic and family violence is one of the main reasons why people experience homelessness,
In Australia, one in six people experiencing homelessness are over 55 years, and
Over 15,800 children younger than 12 years are homeless.

The Productivity Commission’s report shows that during the 2021-22 financial year, the national average spent on social housing services was $178.76 per person, and there was a national average wait time of six months for housing.

Maiy Azize said “We’re calling on the Federal Government to increase Commonwealth Rent Assistance by at least 50 per cent – and fix the payment so that the people who need help most can get it.

“Most importantly, we need a long-term commitment to build social housing. Today’s numbers show that spending on social housing is falling. If they’re going to fix the housing crisis, the Federal Government is going to have to step up and build the social and affordable rentals that people need” she said.

Sally Capp said, “The CCCLM again repeats its call on the Federal Government to review programs and policies to ensure adequate support programs are in place.

“This includes the Commonwealth Rent Assistance program and relevant Centrelink policies that contribute to housing stress and homelessness, such as welfare policies and proof of identity practices to ensure the most vulnerable people in our cities can access social security” she said.