Regions reap homeless funding but city loses out

Regions reap homeless funding but city loses out
Image: The budget overhaul has garnered a mixed response

The state government’s budget for homelessness will be overhauled in 2014, with funding to be distributed on a “needs basis” – to areas with a lower socio-economic status.

Funding will go to areas with greater instances of factors causing homelessness. The changes mean regions such as the Hunter and New England will see funding boosted from $16.4m 2013/14 to $18m each year between 2014 and 2017, according to the Department of Family and Community Services.

But that will come at the expense of services in metropolitan Sydney, with services funding to be cut from $45 million in 2013/2014 to $39.5 million each year between 2014 – 2017.

The decision has been met with a mixed response. Michael Perusco, CEO of St Vincent De Paul NSW, supports the changes and said the homelessness system had developed in an ad-hoc way over time.

“We welcome the move to reallocate resources to areas that most need them,” he said.

“The changes will lead to better outcomes for people who are homeless and ensure people have access to services close to them rather than drifting into the city”.

Mr Perusco said it was important for government and the sector to focus on early intervention to stop people becoming homeless in the first place.

But City of Sydney Greens councillor Irene Doutney said that the changes could mean that homeless people who have become social housing tenants in the city will lose out.

“Over a three year period, we have housed 199 former homeless people across the City of Sydney local government areas as part of the Way2Home Housing Project,” Ms Doutney said.

“My concern is for those homeless people and rough sleepers who may now not be housed in public housing when the Way2Home project ends in June.”

A spokesperson for the Minister of Family and Community Services said the changes deliver “a better balance between crisis support and much needed early intervention and prevention responses”.

Fred* a homeless man who has been living in central Sydney for several years, said it was problematic that services can’t be purchased by trading things other than cash.

Tenders for the funding will close in January 2014 with contracts for the provision of homeless services to regional areas to be finalised by July.

* Not his real name

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