What is the Comprehensive Spending Review (CSR?)
Every few years, the Government lays out its fiscal plans through a Comprehensive Spending Review (CSR). This summer’s CSR is the first of the Labour government and will cover their spending plans for a minimum of three years. For Ministers, it is a big opportunity to lay out their stall on key issues, how a manifesto commitment to get back on track to ending homelessness can be met.
As part of the CSR process, Government asks for evidence from expert bodies about the impact of spending decisions in their area. Last week, we sent our submission on how decisions in the CSR could help reduce the number of people experiencing homelessness.
Our submission collects the voices of our members and what you have told us needs to change. This includes drawing from the extensive conversations we held prior to the election about how current funding helps or hampers your work. You can read our full submission here.
What we asked for
This process could be a real force for change, and so 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
- Cross-departmental investment to prevent and end homelessness
- Reform to the funding system to deliver effective homelessness support
Central to our asks is the need for funding that breaks the cycle of short-termism and crisis that has driven more people into homelessness and pushed many services to the brink of closing altogether.
We are hopeful that Treasury will see that preventing homelessness whenever possible, and supporting services to deliver effective support, is the right thing to do. Both morally and financially.
Immediate considerations to secure the homelessness system
We know that long-term reform will come too late for many services being pushed to the brink by immediate financial challenges.
These challenges include the rise in employer National Insurance, which is set to take £50-60 million extra from the homelessness system without any additional funding for providers. This means services redirecting money away from frontline services at a time when they are needed most. We have called for providers to be given an exemption or for increased costs to be met through government contracts.
Funding crises within local authorities can also severely impact homelessness providers, so in our submission we noted the ongoing problem of councils closing essential accommodation services as they prioritise funding elsewhere.
Similarly, we flagged the risks posed if government generalise local authority budgets in a way which leaves homelessness funding completely exposed to local discretion. When the Supporting People ringfence was removed, homelessness services were some of the hardest hit. We have been clear that the same must not happen again.
Cross-department investment to prevent and end homelessness
The new government’s commitment to a cross-government strategy and the establishment of the inter-ministerial taskforce is very welcome, but we also need to see that backed by the financial commitments.
Our submission highlighted specific factors across government that could work to prevent and end homelessness. These include:
- Investment in building 90,000 social homes
- Reform to housing-related benefits including unfreezing LHA and aligning the benefit cap, equalising benefits for young people, and enabling people living in supported accommodation to work by adjusting the taper rate for Housing Benefit in line with Universal Credit
- Investing in the integration of the NICE Guidelines across health and social care settings
- Supporting non-UK nationals through reform to NRPF restrictions and ensuring local authorities are funded to provide support to everyone regardless of immigration status
- Ensuring appropriate resources to maintain specialist support for veterans and people in contact with the justice system
- Rolling out Housing First so it is available for everyone who needs it
Reform funding to deliver effective homelessness support
Finally, we re-affirmed the need for reform to homelessness funding as explored in our Breaking the Cycle report. This must start with a systematic review of all homelessness-related spending, including the currently unknown number being 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. This is what is needed to enable services to provide the necessary, tailored support underpinned by financial security.
We are not alone in our call for change, and are working closely with Inside Housing in the run-up to the CSR in our joint campaign to Reset Homelessness. This includes a number of comment pieces from our members. If you have a relevant story to tell and would be interested in authoring a comment piece, please get in touch.
What next?
Over the next few months, we will be liaising with ministers and making the case that the CSR is an opportunity to think more holistically about fundamental reform to homelessness funding, investing in the true needs of the sector to prevent and end homelessness for all.
The CSR is due to be published in June 2025 and will be released following a statement by the Chancellor. As ever, Homeless Link’s policy team will work to break down what this means for the sector and communicating this with you as quickly as possible.
Want updates on our campaigns and Parliamentary activity?
Get our regular campaigning newsletter, offering a round-up of key activity and opportunities to get involved. Email our Campaigns Manager Stefan Donnelly Stefan.donnelly@homelesslink.org.uk to sign up.
