Preventing homelessness is not only the most cost-effective approach, but also the most humane, writes Nicci Marzec, chief executive of charity Aspire Oxfordshire, as part of the Reset Homelessness campaign.

Despite investing millions in homelessness services, the crisis continues to escalate. Funds are primarily directed towards those already on the streets, leaving many others at risk. It’s time to take action to prevent homelessness.

By focusing on early intervention and proactive measures, we can significantly reduce homelessness, save money and alleviate the suffering and trauma of having nowhere to call home. 

The government has pledged to spend almost £1bn on tackling homelessness in 2025, including the largest-ever investment in prevention to “turn the tide” on the record-high number of people without a secure home.

Shelter, the charity, estimates that 354,000 people are experiencing homelessness in England, with 159,000 children living in temporary accommodation.

Angela Rayner, the deputy prime minister, has pledged to “break the cycle” of the homelessness crisis by shifting investment towards prevention. Rushanara Ali, the minister for homelessness and rough sleeping, has also acknowledged that all forms of homelessness have increased in recent years, despite government efforts. Ms Ali has called for collective action to prevent another generation from suffering from a lack of access to safe and secure housing.

Increasingly, it is recognised that shifting funding to early intervention and prevention services can lead to better outcomes. Investing in services to prevent homelessness not only saves money in housing budgets, but also reduces the strain on social services, healthcare and the criminal justice system.

A whole-system, cross-departmental approach at a national level, and inter-agency approach at a local level are critical to managing the difficult challenge of shifting resources from crisis to early intervention services.

Investing in services to prevent homelessness not only saves money in housing budgets, but also reduces the strain on social services, healthcare and the criminal justice system.

The challenge is significant and would need to be backed by sufficient and targeted funding. But it is the most impactful way to both reduce demand for resources and improve outcomes. 

One of the greatest obstacles to preventing homelessness is identifying and tracking hidden homelessness. Measuring people at risk but not yet in contact with support services is difficult; many people experiencing hidden homelessness rely on precarious living arrangements, making them harder to reach.

It is also a common misconception that reconnecting individuals with their families is always a viable solution. While family support can be helpful in some cases, it is not a one-size-fits-all solution. Many people face complex personal circumstances that make family reunification impractical or even harmful.

The Trailblazer programme saw services leading on building relationships with individuals at risk of homelessness, job-centre work coaches and local authority housing teams to collaborate find solutions. By providing proactive early support, Trailblazer helped people before their situation worsened to crisis and eviction. This reduced the likelihood of rough sleeping and the need for costly support services to address the resultant trauma.

Research from the Community Navigator programme also highlights the importance of relational capability in preventing homelessness. A survey found that 100% of respondents felt understood and respected by their community navigators.

This sense of trust played a crucial role in their ability to engage with services and build personal resilience: 93% of participants reported increased confidence in handling housing difficulties, with 62% believing they could navigate future challenges independently. These findings show that investing in early prevention can create long-term stability and reduce homelessness.

A recurring challenge is a lack of sustained funding for prevention and the short-term nature of government funding cycles. Short-term contracts and fragmented funding sources create instability, making it difficult to plan and implement long-term prevention strategies. Funding is frequently based on crisis-driven metrics, such as reducing rough-sleeping numbers, rather than preventing homelessness in the first place. This approach can inadvertently push people with higher needs to sleep on the streets to enable them to access essential services.

Funding is frequently based on crisis-driven metrics, such as reducing rough-sleeping numbers, rather than preventing homelessness in the first place.

For service providers, the instability of short-term funding often leads to high staff turnover, inconsistent service provision and a lack of strategic planning. A commitment to five to 10-year funding would enable service providers to develop and refine their prevention strategies, ultimately leading to more effective outcomes.

Furthermore, funding models should emphasise personalised support. Individuals experiencing homelessness have diverse needs, and a one-size-fits-all approach is rarely effective. Services must be designed to provide tailored interventions, whether through Housing First models, community-based support, or specialised programmes for vulnerable groups such as young people, LGBTQ+ individuals, and those with complex mental health needs.

Preventing homelessness is not only the most cost-effective approach, but also the most humane. Investing in upstream prevention, multiyear funding and a whole-government approach would significantly reduce homelessness and create a more sustainable, compassionate system for those at risk.

The time to shift the focus is now, before more individuals fall into the cycle of homelessness and before the costs, both human and financial, become even greater.

Let’s seize this opportunity to make a real difference and build a future where everyone has a safe and secure place to call home.

Nicci Marzec, chief executive, Aspire Oxfordshire

You can read this article on Inside Housing here.

This article is part of our joint Reset Homelessness campaign with Inside Housing. You can read all the editorials here.