The government has announced an £84 million national funding package aimed at preventing homelessness and supporting children living in temporary accommodation across England.
Of this, £36 million will be allocated to London, where councils continue to face mounting pressures from rising rents and a shortage of affordable housing.
The funding is part of the government’s wider Homelessness Prevention Grant, which provides local authorities with resources to help families stay in their homes, secure new tenancies, and reduce reliance on temporary accommodation. The money will be distributed among London’s borough councils, who will determine how best to target support in their areas.
According to the Department for Levelling Up, Housing and Communities (DLUHC), the funding aims to “give councils the tools they need to tackle homelessness at its root, keeping vulnerable families safe and reducing the number of children growing up in temporary or unsuitable housing.”
Homelessness charities have welcomed the funding but stressed that long-term solutions—including more social housing and reforms to the private rental sector—are urgently needed.
The £84 million national fund will be distributed over the next financial year, with local authorities expected to report on how the money is used to prevent homelessness and support families at risk.
Chair of London Councils, Cllr Claire Holland, said: “Despite the work of boroughs, the Mayor of London and our voluntary sector partners to prevent homelessness and rough sleeping, London’s homelessness crisis has worsened significantly over recent years. With 1 in 50 Londoners homeless and record numbers of children living in temporary accommodation, swift action is vital to prevent homelessness and rough sleeping.
"We’re therefore delighted that the government is investing in solutions that focus on prevention, innovation and collaboration - this funding will be critical for progressing the joint work we are doing with the Greater London Authority as we seek to turn the tide on this crisis."