Edinburgh housing programme loses service provider.

Service provider pulls out of Edinburgh housing programme

A homelessness charity has terminated its contract with the City of Edinburgh Council, which provided critical housing in three locations for some of the city’s most vulnerable residents.

The project operated by Right There offers two accommodation units in Pilton and one in Broomhouse, catering to 44 individuals facing challenges such as family breakdowns, homelessness, poverty, addiction, and more.

The charity describes this decision as its “absolute worst-case scenario” and a “last resort”, putting the jobs of 19 support workers at risk.

Right There claims that the local authority is not passing on the increased housing benefit to boost the Housing Management Payment, which has remained stagnant since 2019 despite the rising cost of living.

According to the charity, the council should utilize the additional housing benefit to assist providers in coping with the escalating costs of running an assisted housing programme.

Janet Haugh, CEO of Right There, expressed her devastation over the necessity of discontinuing this service, especially amidst the looming threat of a national housing crisis in Scotland. Despite efforts to resolve the situation with the council, the charity cannot absorb a projected £2.5 million deficit over the next five years while continuing to run the service.

Ms. Haugh stated, “We have explored all avenues with the council, and triggering the three months’ notice period to conclude the contract is our final option. Our focus now is on collaborating with the council to transition the programme’s management to either the local authority or another provider, ensuring minimal disruption for the 44 affected residents and at-risk support workers.”

A spokesperson from the City of Edinburgh Council informed Scottish Housing News, “Despite our efforts to negotiate a resolution, Right There has chosen not to renew the contract due to financial demands we were unable to meet. We regret their decision but will support them during the remaining months of the contract to minimize any potential impact. Our priority is to secure alternative accommodation for affected service users and provide reassurance to staff concerned about their futures.”