Right There and Edinburgh City Council are in a disagreement over contract costs.

More than 40 people could be left at risk of homelessness unless a disagreement over contract costs between a charity and Edinburgh City Council can be resolved. 

Supported accommodation provider and charity, Right There, runs three units in the city, paid for by a council contract. 

However, the charity has now warned that the deal, which was recently renewed for at least five years, will not be viable if increases in funding are not provided. 

Right There cited massive increases in utilities costs and salary increments, as reported in the Scotsman, and suggested an increase to the housing benefit service charge. 

City of Edinburgh Council has requested a temporary, six-month extension to keep accommodation open, but Right There said even that is a step too far as the charity claims it is already covering the deficit in funding and costs. 

Janet Haugh, chief executive of Right There told the newspaper: "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."

A city council spokesperson told the Scotsman: “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.”