Homelessness: Funding

Afzal Khan Excerpts

Tuesday 2nd December 2025 Westminster Hall

[Bob Blackman]

Under the Homelessness Reduction Act 2017, local authorities have a duty to assist veterans who have put their lives on the line for this country. They should be given full support.

The wider context of homelessness is important in discussions of funding. It demonstrates that if we simply allocate the funding to prevent homelessness to the Ministry of Housing, Communities and Local Government and local authorities, we ignore the major drivers of homelessness and will not see the reduction that we all want to see. I have raised this issue many times, and it has become increasingly clear that we need the Government to take action. They need to set out in the forthcoming homelessness strategy a clear direction for how they will tackle the drivers of homelessness, with an approach that prioritises prevention rather than cure, and securing access to stable housing with support as quickly as possible. They also need to make serious reform to funding models to ensure that they are adequate and can deliver outcomes on preventing and ending homelessness.

The cross-Government strategy must address the drivers of homelessness and be clear on the outcomes that we are trying to achieve. We await its publication, which will be a key opportunity to set a clear strategic direction from the heart of Government on the outcomes that we want to see, and to design funding to maximise the chances of achieving them.

Changes to homelessness funding are not isolated from wider Government policy. The numbers show that welfare decisions, Home Office policy changes, and the ongoing failure to end street discharge from hospitals and prisons are pushing more and more people into homelessness. The Government must consider any changes to homelessness funding alongside wider policy and the cross-Government strategy for homelessness and rough sleeping—in particular, how welfare policy decisions increase demand on local government services.

[Afzal Khan (Manchester Rusholme) (Lab)]

In my constituency, Caritas provides homeless support through its day centre and supported accommodation facility. It supported over 1,000 people last year, and demand for the service has risen by 19%. Does the hon. Member agree that long-term sustainable funding would help organisations such as Caritas provide their vital services and support those who most need it?

[Bob Blackman]

I thank the hon. Member for that intervention, which leads me on to the aspects of what local authorities have to do. They are the front door; they are dealing with this crisis 24/7, 365 days a year. The Government must provide them with more help with temporary accommodation costs. Last year alone, local authorities spent £2.8 billion on temporary accommodation, which often came from homelessness budgets. It is positive that TA funding is being moved into the revenue support grant, but the lack of Government subsidy for housing benefit and temporary accommodation costs means that the core issue remains unaddressed.

The welfare system and other public services must do more to prevent homelessness. The lack of social homes and the continued freeze of local housing allowance leaves people with nowhere to go. Fewer than three in every 100 homes for rent are affordable for someone who needs local housing allowance. Furthermore, according to the Crisis monitor, homelessness on discharge from public institutions—hospitals and prisons—has risen by 22%. I have raised that repeatedly in this place, but I have seen no action on it. If it does not change, councils will continue to face impossible levels of need with inadequate levels of funding.