America’s war with Iran could drive more people in the UK into homelessness, a senior Labour minister has warned, as figures continue to reach record numbers.
Speaking to The Independent, homelessness minister Alison McGovern admitted she is “worried” about the cost of living rising as a result of the conflict, as spiking oil prices threaten household costs.
Brent crude topped $110 a barrel again on Friday after Iran warned that the Strait of Hormuz is “closed” and that any transit through the waterway will face “harsh measures”.
The waterway provides the only passage from the Persian Gulf to the open ocean, making it a crucial point for the oil industry. Around 20 per cent of the world’s gas and oil is shipped through the strait, with continued Iranian threats proving highly damaging for global trade.
Fuel prices in the UK have already begun to rise amid the conflict, with experts warning that energy bills and even the cost of food could follow suit in the Summer.
Ms McGovern said: “I am worried about cost of living pressures coming from the Middle East, and of course, that will have an impact on our ability to prevent homelessness, because the big cause of homelessness in this country is people not having enough income for the properties that are available.”
“We are in a better position than we might have been because of two things”, she added.
“The decisions that Rachel Reeves, the chancellor, took to stabilise our economy and to give us a better chance of dealing with this than we would have, you know, if we were still in the booming bust of Liz Truss.
“We’re also in a better position, the more that we continue with our investment in renewable energy. I think that this crisis shows us that having that independence [and] security in our energy by creating those renewable sources is the right strategy.”
Homelessness in the UK continues to reach record highs, latest official statistics show, with 4,763 people sleeping rough and 134,760 households in temporary accommodation last September. This includes 175,990 children, and an estimated 350,000 people in total.
Sarah Elliott, chief executive of Shelter, said: “Years into a cost-of-living crisis, families are already at a cliff edge. With housing swallowing such a vast chunk of incomes, any spike in costs could push people out of their homes and into homelessness.
“Every day we hear from families forced to make the impossible choice between heating their homes and making their rent. No one should have to cut back on essentials because they are paying over the odds to keep hold of their home.
“To tackle the affordability crisis, the government must unfreeze housing benefit and rein in eye-watering, in-tenancy rent hikes. But there is only one lasting solution to the housing emergency: a new generation of genuinely affordable social homes with rents pegged to local incomes.”
Labour has pledged to build 1.5 million homes by 2029 to boost affordability and tackle homelessness, and 180,000 social homes by 2036. However, experts have warned that the government is not on track to meet its main target, with analysis in December finding it would fall around 500,000 homes short.
Asked about her government’s progress, Ms McGovern told The Independent: “The 1.5 million homes. It’s a challenge, right? It’s a challenging figure.”
“But what’s the alternative? You say, OK, because it’s difficult, we better not have a target. The problem with that is that we know we know that getting rid of housing targets meant that we didn’t build any homes.”
“So I don’t think that the right thing to do would be to continue the policy of not having the target for house building. And I think that we knew that it would ramp upwards, that there might be a slower start, but those planning commissions are coming through now.”
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