UK government to double funding for homelessness programme by Christmas

Doubling of funding ahead of the summit

On the eve of the first homelessness summit to be held at Downing Street, which will take place on Monday, the prime minister's residence said that on Wednesday the budget will add a further £432 million to the initiative, BBC News reports. This will double the funding for Prime Minister Andy Burnham's pledge to give every homeless person in England a route off the streets by Christmas. Ending homelessness became one of Burnham's first promises after taking office in July, when he announced a £442 million package for emergency accommodation and practical support. The new money will extend support beyond March 2027 to the end of the parliament, bringing total investment to £874 million.

How the programme works

According to the government, the initial funding made it possible to launch specialised outreach teams and new sleeping places in Coventry; in the coming weeks provision is being rolled out in Plymouth and Camden in north London. The BBC, citing its own understanding, reports that the government's commitment is that every homeless person will be able to physically move into accommodation by Christmas and/or receive support to prevent sleeping on the street. Some may refuse housing, but, according to ministers, support will still be offered to them. More than 30 organisations, including commercial companies and charitable foundations, have pledged support for the plan. The National Housing Federation is working with housing associations to identify at least 2,000 potential homes and sleeping places, including vacant premises. However, the BBC notes that it is not yet clear how many of the 2,000 properties are self-contained units, and whether the identified housing will be enough.

The scale of the problem

According to the latest official figures, in autumn 2025 there were, on a single night in England, 4,793 people sleeping rough. According to the BBC, the number of homeless people in England is at its highest level since records began in 2010. Burnham said ahead of the summit: 'Homelessness is not a fact of life. It is something governments either choose to accept or not. I do not accept it.' He stressed that 'this cannot be done alone', which is why business, charities and local leaders are gathering at Downing Street.

Opposition criticism and the Manchester experience

Shadow Housing Secretary Katie Lam said homelessness had reached 'record highs under Labour', and criticised Burnham for failing to end homelessness during his time as Mayor of Greater Manchester: 'Burnham is throwing another £432 million at a problem he failed to solve in Greater Manchester.' According to the BBC, Burnham promised to end homelessness in the region by 2020: in 2017 there were 268 people on the streets, and by 2020 the figure had more than halved to 125 — the target was not met. In 2021 the number fell to 90, but then rose every year, reaching 197 by 2025. Meanwhile, the Bed Every Night scheme created by Burnham now provides more than 600 sleeping places per night.

The sector's demands to go further

Although homelessness organisations welcome the government's attention, many are urging ministers to go further in the budget. Leaders of 40 housing sector organisations signed an open letter calling for Local Housing Allowance rates to be restored so that they reflect local rents. According to the Resolution Foundation, more than 1.1 million low-income tenants face a gap between housing benefit and actual rents, and in October this gap will reach a record level. Organisations note that help for those already homeless is necessary, but for long-term success preventing homelessness is critical. The significance of the event is that the decision affects thousands of people without homes and sets the priorities of Wednesday's budget; the practical consequence is the extension of funding to the end of the parliament and the expansion of the network of housing and outreach teams to new cities.

Image source, Reuters