In a groundbreaking move, councils across England will receive nearly £1 billion in funding next year to tackle, reduce, and prevent homelessness. This historic investment is part of the
government's comprehensive Plan for Change, aimed at addressing the growing housing crisis and offering robust support to rough sleepers and vulnerable families.
Key highlights of the funding:
Unprecedented support for homelessness prevention
Councils will have access to almost £1 billion to strengthen local homelessness prevention services. This funding will help stop households from becoming homeless, provide support for rough sleepers, and reduce the reliance on temporary accommodations such as bed-and-breakfasts.
Empowering Councils to take action
Local authorities will be better equipped to intervene early, mediate with landlords or families to prevent evictions, and help residents find new homes. Resources will also support schemes like Housing First, which focuses on securing stable housing for people with complex needs, including those struggling with substance abuse.
Targeted programs for vulnerable groups
Prison leavers will benefit from tailored programs that provide housing, education, and employment opportunities to aid their reintegration.
Families in temporary accommodations will see efforts to move them into secure housing, addressing issues such as inadequate facilities in emergency shelters.
Addressing Systemic Failures
The investment aims to reverse years of underfunding that left families trapped in temporary housing and increased the use of emergency accommodations. Currently, over 123,000 households, including 160,000 children, face homelessness.
Leadership commitment
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.
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.”
Breakdown of the funding:
The nearly £1 billion investment includes:
-£633 million for the Homelessness Prevention Grant to stop evictions and provide temporary housing for families in need.
-£185.6 million for the Rough Sleeping Prevention and Recovery Grant to provide warm beds and essential services for rough sleepers.
-£37 million for long-term accommodation support and specialist services for mental health and substance abuse.
-£58.7 million for drug and alcohol treatment programs tailored to rough sleepers.
-£10 million for Changing Futures programs assisting adults with multiple disadvantages.
- £5 million for pilot programs aimed at reducing reliance on emergency accommodations.
Wider plan for housing reform:
This investment is part of a broader effort to address the housing crisis, including:
-Abolishing Section 21 "no fault" evictions through the Renters’ Rights Bill to improve tenant security.
-Enhancing social housing with an extra £500 million for the Affordable Homes Programme.
-Reforming the Right to Buy scheme to increase council housing availability.
Looking ahead
The government’s Plan for Change aims to end homelessness, improve housing security, and deliver the largest boost in affordable and social housing in a generation. As part of these efforts, a new Inter-Ministerial Group, chaired by the Deputy Prime Minister, will work with local authorities and mayors to ensure long-term solutions to homelessness and housing challenges.
This ambitious funding package represents a decisive step toward building a fairer housing system and providing stability for families and individuals in need. Photo by Philafrenzy, Wikimedia commons.