Last updated: 20 February 2025
What is it?
This document is a formal submission to HM Treasury's call for evidence ahead of the upcoming Comprehensive Spending Review.
Who is this for?
This document is written for HM Treasury Ministers and Officials, setting out how reforms the homelessness funding system can support more sustainable and empowered homelessness prevention and support services.
The document summarises existing cost pressures and challenges which others in the homelessness sector and with an interest in homelessness may find useful.
Key takeaways
The Comprehensive Spending Review has the potential to be a real force for positive change in the sector. It is a chance to break the cycle that drives rising levels of homelessness and the associated rising costs for the government and local authorities.
Reforming the homelessness funding system is not simply about putting more money into the system, but a changed approach which breaks the cycle of short-term thinking and crisis management, instead investing in long-term solutions to homelessness.
Both morally and financially, this change is the right thing to do. A more strategic approach can put the nation back on track to ending homelessness and deliver better value-for-money for government.
This document sets out some of the changes which could empower frontline homelessness services, already providing vital support to people at risk of and experiencing homelessness, to make this vision a reality.
We have looked at multiple areas where Treasury can make a difference to people experiencing homelessness. Our asks fall across three broad categories:
Immediate considerations to secure the homelessness system. Long-term change is needed, but so are immediate measures to prevent services closing due to critical cost pressures, including national insurance rises and local authority budget pressures.
Cross-departmental investment to prevent and end homelessness. The government’s commitment to a cross-government strategy and the establishment of the inter-ministerial taskforce needs to be supported by cross-departmental financial investment. Looking across government, we highlight measures and reforms which could prevent and end homelessness, including building more social housing, widespread adoption of Housing First and reform to the benefits system.
Reform funding to deliver effective homelessness support. This must start with a systematic review of current homelessness spending, including the currently unknown number spent on Enhanced Housing Benefit.
Ultimately, we have asked government to develop a long-term ring-fenced homelessness fund which aligns with our essential principles of homelessness funding, set out in our Breaking the Cycle report.
Call to action
Policy makers should use this document to inform decisions taken in the Comprehensive Spending Review and the upcoming Homeless Strategy, particularly in the context of decisions around long-term funding provisions.
Other stakeholders should feel free to use our evidence when making a case locally and nationally.
This document cross-references ‘Breaking the Cycle: Funding a homelessness system that works.’
