In the months prior to the election, the new Labour government set the stage for an end to sticking-plaster politics and we’re now looking ahead as to what that means in practice.
Chancellor Rachel Reeves has made it clear that her 30th October budget will include many “difficult decisions” but there is also already opportunity emerging for the homelessness sector to push for the substantive changes we need to see, with the multi-year spending review and a promised new cross government homelessness strategy.
It is almost impossible to know what is in store for our sector, where funding decisions weigh large on our day to day work. The budget comes at a challenging time. Many of the primary funding sources for the sector are set to end before the new financial year, putting services and the people they support at risk. The anxiety that this is causing across the sector is vast, that’s why Homeless Link are calling for an urgent commitment to roll-over existing grant funding for the next year to ensure the financial stability of providers across the country.
But this cliff edge is a symptom of the problems of the existing system, where short-term, patchwork funds have left many essential services financially vulnerable. While we need certainty into next year, we know we have been here before, and this constant cycle of new grant schemes, commissioning and tendering, and funding cliff edges can’t continue. If we are to get back on track to preventing and ending homelessness we need long-term reform.
Together, we can make this happen. In our new report “Breaking the Cycle: Delivering a homelessness funding system that works for all”, we outline the complex and messy picture of funding within the sector, how we got here, and the essential principles on which to build a new funding system. This new system must enable the delivery of effective, high-quality housing and support rather than one that providers navigate around to deliver the services that are needed.
We know that a huge amount of money is going into the sector, but that government have lost control of how much they are spending and where that money is going. Despite the scale of funding, we are trapped in a model that drives our resources to be focussed on emergency support at the expense of much needed investment in prevention, housing and support. Without change we will continue to see growing demand and clogged up move-on pathways. Our report outlines how government can save money – and lives – by regaining strategic control over homelessness spending by reinvesting in a holistic system, rooted in effective partnerships, that works for all.
The blueprint for this already exists. The last Labour Government delivered the ground breaking Supporting People programme from 2004-2009. At the time, this was described as ‘punch[ing] above its weight’, and was assessed as delivering £3.4bn in savings against an investment of £1.6bn. Meanwhile a recent National Audit Office report looking at Government homelessness spend found that MHCLG could not ‘demonstrate that it is delivering optimal value for money from its efforts to tackle homelessness’ The new government would do well to learn from history and recognise that sensible investment in ending homelessness is not only morally the right thing to do, but it is also in everyone’s financial interest.
The upcoming budget and spending review is our opportunity to make sure Treasury hear our voices. Having gathered case studies from our members, we have already made a budget submission, asking government to urgently secure budgets next year and commit to full review and reform as part of the spending review.
We have also developed resources to help make your voice heard. Pressure from within Parliament and in the media will be key to our asks being successful. Our Autumn Budget Campaign Pack contains a template letter to send to your local MP(s) and a template press release to land media coverage and look out for our upcoming open letter to the Chancellor.
It is not too late to engage politicians to create the change we need, and together we can push for the system, and the funding that enables it, to prevent and end homelessness for all.
