Interview: Seyi Obakin, Centrepoint chief executive

A formative career in financial services is an unlikely grounding to run a charity for disadvantaged young people. However, Seyi Obakin’s experience in banking could be crucial over the coming months as all charities grapple with the financial challenges presented by Covid-19. Obakin, who was raised in Nigeria, has spent more than a decade as chief executive of youth homelessness charity Centrepoint, after making the jump from the private sector to housing associations in the mid-1990s. During his time at Centrepoint he has overseen a period of sustained growth for the charity, which provides accommodation, health support and life skills for young people aged 16-25, and last year celebrated its 50th anniversary. In 2018/19 it provided services to more than 15,000 young people across London, Manchester and the North East. Its last set of accounts showed that in the year to March 2019, income increased from £32.7m to £34m, with expenditure rising by £1.1m to £32.8m.

How did you cope when lockdown was first imposed in March?

The principles we wanted to stick to during lockdown were: to keep all our hostels and services open to avoid young people becoming homeless and being forced to sleep rough; and to do whatever was necessary to keep our staff safe.

We were asking people to get on trains and buses and get out there; staff wanted to do that as they didn’t want to let the young people down. They looked to us to protect them, but no one had enough PPE (personal protective equipment). A stock of PPE that was meant for us was diverted to the NHS. We begged and borrowed PPE through the help of supporters, for example, a dentist gave us face visors. Kudos to my staff for continuing to support young people despite the difficulties.

We also had to think about how to keep young people safe. We had to think about what we’d do if one of the young people in one of our hostels were to be infected. How do you self-isolate someone living in a 50-bed hostel?

What has been the impact of the pandemic on Centrepoint’s finances?

All of the measures we put in place have had a cost attached to them. We have had to fund places for young people to self-isolate and even though some PPE was donated to us we’ve still had to pay for some. There has also been the cost of making facilities Covid-safe. It has cost us at least £500,000 and once you factor it all in – including the fact we couldn’t hold fundraising events – it is probably £1m.

How did you manage this financial situation?

We did scenario planning – what would we do if we lost X per cent of income. I would say that we will lose 15 to 20 per cent [of income] this year, which is at the bottom end of our initial fears. I can’t praise the fundraising staff enough. They have left no stone unturned in bringing in income; it would be considerably worse without their efforts.

Were you prepared for the latest lockdown?

We’ve reinstated many of the arrangements we had in place during the first national lockdown. However, one of the big challenges from earlier in the year was the impact on young people’s mental health from not going out. Many were living in rooms on their own. Staff and children had temperature checks when accessing and leaving the building.

Local lockdowns are different: the young people are not stuck in their rooms and are mixing as a household. It will be much harder to manage, but the flip side is that the mental health impact is not as severe.

The message we give to young people [normally] is not to isolate themselves because it is not good for their mental health, but throughout lockdown we needed them to. Staff encourage young people to come out of their rooms in bubbles so not everyone is out at the same time.

What support have you put in place to help young people through this?

Young people have lost friends because of the virus. We have a team of psychotherapists and without their support it would have been much more difficult to get through the pressures of the first wave. The therapists were able to offer young people digital support sessions and some were able to undertake visits in person.

What will the long-term impact of the pandemic be for Centrepoint?

It is inevitable we will see an increase in demand and we have to plan for that. For many young people their last resort is sleeping rough; first they will have stayed with a friend or on a relative’s sofa. Only once these options have run out will they end up on the street. If households are struggling these doors will be closing, so I expect things to get worse unfortunately.

The signs things are getting worse are there already: calls to our helpline went up 50 per cent in the immediate aftermath of lockdown. A poll we did of councils found that three quarters expect homelessness to increase across all ages. Youth unemployment is also up due to the impact on retail and hospitality jobs. To think it won’t get worse is naïve.

Do you have any solutions for what can be done to minimize the impact?

We need to look for every opportunity for young people to train and get a career in a range of sectors including our own. The government’s Kickstart training scheme should help. For example, we are encouraging employers to run six-monthly cycles for four young people over two years, rather than offering one person a two-year placement. It could provide a launchpad to retrain for more young people.

We’re working with employers and have set up a partnership with recruitment specialists Cordant People. They have a dedicated resource to help support young people to transition into employment.

Are councils doing enough to tackle youth homelessness?

Councils are in a difficult position – central government has taken £1bn out of their annual Supporting People funding since 2008. This huge financial hole has been there at a time when need has gone up. It is not enough [for ministers] to say councils are getting £100m to plug that gap.

The Homelessness Reduction Act was introduced in 2018 but councils didn’t get enough money to go with the extra duties. Now we have the pandemic. Unless more is put into supporting young people this group will get bigger.

The “everyone in” initiative in response to the pandemic shows us what can be done – we don’t have to wait 10 years to end homelessness, but we have to put the resources we need behind it. That includes building more homes and reforming planning rules so that houses can be built quickly. We also need to change the benefits and housing allowance system.

You disagree with calls from the children’s commissioner for England and others to ban the use of unregulated accommodation for all looked-after children. Why?

A blanket ban is a blunt tool. It will reduce accommodation capacity at a time when the system needs more capacity.

We’ve heard terrible stories of young people being placed in undesirable accommodation – that has to stop. We don’t want bad providers, but a blanket ban is too blunt, instead we need regulation. We have to set standards for accommodation providers and ensure they keep to them.

If you take a lot of funding out of the system you must expect there will be compromises, and this is one of those. Local authorities don’t want to put young people in bed and breakfasts; they do it out of necessity.

Will tackling homelessness have a bigger profile this Christmas?

It is easier to get people to think about homelessness at Christmas and during the winter, but I think lockdown and the pandemic has catalysed something for all of us: the importance of home all year round is much more in our consciousness. Our Covid-19 appeal was successful – it was about keeping people at home and safe. The message is the same during Christmas; it’s an awful time to not have family around you at home. It is even more critical this Christmas but it is important at all times of the year too. The rule of six will have a big impact on everyone’s Christmas, but what will it mean for a young person with nowhere to go?

• SEYI OBAKIN CV
• 2009 to present – chief executive, Centrepoint
• 2003 to 2009 – chief operating officer and formerly finance director, Centrepoint
• 1995 to 2003 – various roles at housing associations
• 1988 to 1995 – corporate banking roles, Citibank and BNP Paribas
• 1983 to 1988 – audit manager, PricewaterhouseCoopers

Other:

• 2018 – non-executive director, HM Prison and Probation Service
• 2016 – awarded an OBE for services to youth skills, employment and homelessness
• 2014 – member, Social Security Advisory Committee