Sudden closure of homelessness charity costs council £80,000
A total of 96 staff lost their jobs on payday last week after Lowestoft-based Access Community Trust dramatically folded.
The Access Community Trust logo. Image: Access Community Trust (Image: Access Community Trust)
Shocked staff - some who told they would be losing their jobs via a text message - were informed they would not be paid for their last month of work after the trust ceased trading last Wednesday, February 25.
It prompted emergency measures to be put into place as part of a multi-agency response led by East Suffolk Council.
With the council informed on Monday, February 23 - two days before the sudden closure - that people were "going to be put on the streets on a Wednesday", it saw the authority make emergency arrangements to ensure those using its services had a place to stay.
Sam's Wellbeing Hub and Café in Lowestoft which closed. Image: Mick Howes (Image: Mick Howes)
The trust had provided 87 bed spaces for homeless and rough sleeper services across East Suffolk, so the council acted promptly to ensure 75 of the bed spaces were retained through new service providers, with the council taking responsibility for the remaining 12 beds in different temporary locations.
Keeping these homelessness services afloat has cost East Suffolk Council £80,000 from its reserves.
On Tuesday, March 3 the council's cabinet members agreed to start procuring homelessness and rough sleeping services through contracts totalling £4.9 million in Government funding over the next three years.
A report entitled 'Award of contract/s under the Homelessness and Rough Sleeping Grant allocation" was unanimously approved.
East Suffolk councillor David Beavan. Image: East Suffolk Council (Image: East Suffolk Council)
Cllr David Beavan, the council's lead for housing, said the services "form a critical part of our local pathway, reducing crisis demand, improving outcomes and enabling people to move away from rough sleeping into safe, sustainable accommodation".
Access Community Trust would have been one of those providers.
Councillor Mark Jepson. Image: East Suffolk Council (Image: East Suffolk Council)
During the debate, which included questions and praise for the council's response, from Cllrs Mark Jepson and Peter Byatt, Cllr Beavan outlined last week's "disaster".
He said: "Something went really wrong with the governance on Access Community Trust.
"On the situation with Access Community Trust, obviously they were going to supply some of the services for this fund here, and we were at procurement at the time when they went bust.
"But I'm assured by the head of housing that we think we're going to get people bidding for these grants, so we'll be able to continue the service as before, even with Denmark Road where there's 12 beds that we're still finalising arrangements for.
The Access Community Trust website. Image: Access Community Trust (Image: Access Community Trust)
"If you're a homeless charity, one thing we say to people when they come to us as homeless is, for heaven's sake, let us know before you become homeless so we can try and prevent it.
"Well surely a homeless charity should have let us know before they went homeless?
"Being told on a Monday that people are going to be put on the street on a Wednesday is not the way to do it."
East Suffolk councillor Peter Byatt. Image: East Suffolk Council (Image: East Suffolk Council)
Of sacking staff by text, Cllr Peter Byatt said: "It is quite a sorry state, and I thank you (the council leader and lead for housing) and all the staff for stepping in and for what you've done."
Speaking about the closure, Cllr Caroline Topping, the authority's leader, said there had been no red flag around the charity when awarding the contract last year.
East Suffolk Council leader, councillor Caroline Topping. Image: East Suffolk Council (Image: East Suffolk Council)
"All I can say is I don't know how long this council or our predecessor council had been working with the trust supplying this type of accommodation but I've been on the council nine years and I think I'm right in saying that they've been providing our homeless accommodation in all that time," she said.
“We’re all quite shocked and sad for an organisation that had been in existence for 50 years.”
