Funding announced to tackle homelessness

The government has announced nearly £1 billion of new funding for councils next year to tackle and prevent homelessness.

It is hoped that more people will be prevented from becoming homeless with the largest-ever investment in homelessness prevention services.

More resources will be available for workers on the frontline who provide essential services to get rough sleepers off the street and into secure housing as well as seeing more homeless families out of temporary accommodation.  

Councils will be better equipped to step in early to stop households becoming homeless in the first place, including through mediation with landlords or families to prevent evictions, help find new homes, and deposits to access private renting.

Deputy Prime Minister and secretary of state for housing, Angela Rayner said: “Too many people have been failed by the system time and again.160,000 children face spending this Christmas without a stable place to call home. I am determined to break the cycle of spiralling homelessness and get back on track to ending it for good.

“This largest-ever investment marks a turning point, giving councils the tools they need to act quickly and put in place support for people to tackle, reduce and prevent homelessness. It’s time to turn the tide.

“This historic funding comes alongside our work developing a cross-government strategy back on track to end homelessness, pulling every lever of the state, to ensure that we deliver not just sticking plasters but a long-term plan.

“Through our Plan for Change I am determined to tackle the housing crisis we inherited head on, building the homes we need, delivering the biggest boost in social and affordable housing in a generation and ending no fault evictions."

The funding includes over £633 million for the Homelessness Prevention Grant, a £192 million increase from this year, supporting councils to prevent homelessness and provide temporary accommodation where required for families who recently became homeless, for example, through eviction or fleeing domestic violence. This is allocated based on local pressures.  

There is £185.6 million for the Rough Sleeping Prevention and Recovery Grant, consolidating the main rough sleeping and single homelessness focused grants into a single pot of money. This means councils can better prioritise when providing warm beds and shelter for people at risk, or experiencing, rough sleeping.

More than £37 million has been allocated for the Rough Sleeping Accommodation Programme, providing ongoing support costs to help rough sleepers into longer term accommodation alongside specialist staff supporting their mental health and substance abuse problems to pave the way for job opportunities.

Furthermore, there is £58.7 million for the Rough Sleeping Drug and Alcohol Treatment Grant; £10 million for the Changing Futures Programmes; £7.6 million for Sector Support grants; and £5 million for Emergency Accommodation Reduction Pilots.

Minister for homelessness, Rushanara Ali said: “We have inherited the worst housing crisis in living memory that has left far too many families trapped in temporary accommodation with no end in sight and soaring numbers of people sleeping rough on our streets.

“This is the dire legacy we have inherited as a government, and we are fully determined to take immediate action. Our funding will not only support councils delivering vital services that meet the needs of their communities but also pave the way for our long-term plan to get us back on track to end homelessness once and for all.”

Local Government Association housing spokesperson, Cllr Adam Hug said: “Homelessness is one the biggest and most urgent pressures facing councils as more and more people are turning to their local council for support. A record number of households are in temporary accommodation – this represents a personal tragedy for each one, as well as a significant cost for councils struggling to source temporary accommodation.

“Preventing people from becoming homeless in the first place is both humane and cost-effective. The new funding announced today will be a great help to councils as they seek to end homelessness, and will help to relieve some of the financial burden they are under.

“We look forward to collaborating with the Government as they develop their cross-government homelessness strategy. To be most effective, this will need to set out national commitments from each government department, monitor and report departments’ contributions, and ensure that local partners contribute to prevention activity and targets through local homelessness strategies.”