Charity Scotland: More than 40 people in danger of homelessness due to row with Edinburgh City Council

The homeless and social support charity Right There runs three accommodation units, paid for via an Edinburgh City Council contract, on West Pilton View, Crewe Road Gardens and Broomhouse Medway. The charity was recently awarded a contract renewal for at least the next five years. However, without an increase in payment, the charity has warned the contract is not viable.

Right There said this was due to major increases in utilities costs and salary increments, and the charity is therefore unable to commit to taking on the contract.

The charity has suggested that increasing the housing benefit service charge could be a means of reaching an agreement with the council, as service charges can be covered by housing benefit if their payment is a condition of occupying the home.

The council has requested a temporary extension of the existing contract of six months, to keep the accommodation open. But Right There has warned even this is unsustainable given the charity is already subsidising Edinburgh City Council’s accommodation provision due to the deficit in funding and costs.

Janet Haugh, chief executive of Right There said: "I confirm that we are in dialogue with the local authority to seek urgent action to resolve this crisis. We need to work together very quickly to ensure that a large number of people, who are already going through a really difficult time, do not lose their homes or the essential support they are receiving, and a significant number of jobs are not put at immediate risk."

The charity has now said it has “no alternative” but to give the three months’ notice it is required to give to signal the end of the provision of the accommodation, if a settlement cannot be reached.

Right There houses 44 people in its accommodation and employs 19 staff in relation to the provision of accommodation in the capital. Staff jobs are also at risk due to the situation.

Edinburgh Council’s housing chief Cllr Jane Meagher has this month urged First Minister John Swinney to ensure building more affordable homes was a top priority for his government. The city council formally declared a housing emergency in November last year.

A city council spokesperson said: “The decision not to take forward a new contract has been made by Right There despite our attempts to find a resolution. We are disappointed they have taken this step, but we were unable to reach an agreement with them over their financial demands.

“We will meet with them soon to support them over the last few months of the contract to minimise any impact their decision may cause. We will do everything we can to find alternative accommodation for service users affected by this and also their staff who may have concerns about their jobs.”