Right There said it has been forced to make the decision by City of Edinburgh Council.
An Edinburgh charity has said it has been forced to end its contract with City of Edinburgh Council to provide critical housing in three locations for some of the city’s most vulnerable residents.
The group, Right There, said the council’s refusal to pass on an uplift in Housing Benefit to increase the Housing Management Payment to the charity led to the decision, describing this as an “absolute worst case scenario” and a “last resort”.
The Housing Management Payment has remained unchanged since 2019 despite the cost of living skyrocketing in that time.
Right There said that over the last five years the local authority has received increased housing benefit which it refuses to pass on to providers to help deal with increased costs of running an assisted housing programme.
Two housing facilities are now facing closure - one in Broomhouse and two residential units in Pilton.
Their closure comes as the Scottish Government announced a national housing emergency.
The project run by Right There provides accommodation support for 44 of Edinburgh’s most vulnerable people, who live with the consequences of family breakdowns, homelessness, poverty, addiction, and many other challenges.
In addition, the jobs of 19 support workers are now at risk.
Janet Haugh, CEO of Right There said: “We are devastated that we are having to pull the plug on this service, this is our absolute worst case scenario, especially when Scotland is at the brink of a national housing crisis. We have done everything in our power to resolve this with the Council but sadly as a charity we simply cannot absorb a projected £2.5 million deficit over the next five years and continue running this service
“We have exhausted all avenues with the Council and bringing the contract to a conclusion by triggering the three months’ notice period is our last resort. Our priority now is to work with the Council to hand over the running of the programme to either the local authority or another provider to ensure as much continuity and as little distress as possible for the 44 residents affected, and the support workers whose jobs are at risk.”
A spokesperson for the City of Edinburgh Council said: “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.”
