Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Government extended 'thank you' payments to Homes for Ukraine sponsors for a third year.
Conclusion
Any adult in the UK can act as a sponsor providing they pass eligibility checks conducted by the Home Office and local authorities. Sponsors are expected to offer accommodation for at least six months, although many relationships have lasted longer and some have ended before then. By end of March 2023, DLUHC had spent £100 million on thank you payments made to sponsors to recognise their role in providing accommodation to Ukrainians.30 In November 2023, the government extended ‘thank you’ payments of £500 a month into a third year for sponsors so that Ukrainians could stay with them for the full three year period of their visas.31 24 Q 32 25 Qq 46–48 26 Qq 32–34 27 C&AG’s Report para 4.12 28 Q 32 29 Q 33–34 30 C&AG’s Report 3.6 31 Qq 12, 20, 57; HM Government, Autumn Statement 2023, November 2023, para 4.107, 5.199 14 Homes for Ukraine
Government Response Summary
DLUHC has conducted detailed analysis using ONS survey data and other evidence, showing thank you payments offer good value for money compared to alternative accommodation options and support integration. The government also announced £120 million UK-wide funding for homelessness prevention in Autumn Statement 2023, which can support Ukrainian households.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 DLUHC looked in detail at a range of evidence to understand the value for money case for thank you payments including the use of the Office for National Statistics (ONS) survey data to understand sponsor intentions, employment, earnings and homelessness data, arrivals data and estimates of likely demand for sponsorship to set out the fiscal benefits of the policy. 4.3 This analysis suggests that thank you payments are good value for money compared to the counterfactual of government support for alternative accommodation options/ homelessness support. It costs £6 to £8 per person per night to provide a Ukrainian sponsorship accommodation (based on monthly thank you payments of £350 per household in the first year, and £500 per household thereafter), which is much lower than the costs to accommodate households in temporary accommodation. 4.4 Sponsorship accommodation uses pre-existing supply (avoiding additional pressure on the housing market) and provides day-to-day support from sponsors with finding employment, education and accessing public services. The ONS survey results from July 2023 found that a higher proportion of adults on the Homes for Ukraine scheme were employed or self-employed in the UK (55%) compared with those on the Ukraine Family Scheme (not in sponsorship accommodation) (46%). 4.5 There is good evidence that homelessness prevention funding is good value for money and reduces the number of households that enter temporary accommodation. The impact evaluation of the Homelessness Prevention Trailblazers found a 13% reduction in acceptances for the homelessness main duty compared to non-trailblazer areas. 4.6 At Autumn Statement 2023, the government announced £120 million UK-wide funding to invest in homelessness prevention. This funding can be used to support all households at risk of homelessness, including Ukrainian households who can no longer remain in sponsorship for 2024-25. This followed the £150 million which was made available during 2023-24.