Homelessness: Funding

Gareth Bacon Excerpts

Tuesday 2nd December 2025 Westminster Hall

[Gareth Bacon (Orpington) (Con)]

It is a pleasure to serve under your chairmanship, Mr Vickers, and to take part in this debate about the adequacy of funding to support homeless people. At the outset, I thank my hon. Friend the Member for Harrow East (Bob Blackman), for securing this debate. I know how important this topic is to him, and his forensic opening speech this morning emphatically underlined that. I am confident I speak for all sides of the House when I say how appreciated his tireless efforts have been to address the tragedy of homelessness. I also thank all hon. Members who have contributed to this debate.

Just over a month ago, I had the pleasure of coming to this place and hearing 17 speeches from a range of hon. Members on the issue of homelessness. Some of them are here again today and some are not. I said at the time that homelessness is a “social tragedy” wherever it occurs and for whatever reason. That we are back here again shows both the importance of this issue to my hon. Friend the Member for Harrow East and its significance to hon. Members across the House.

Unfortunately, since the last debate, things have got worse rather than better. The future cost of living looks worse—certainly in the wake of last week’s rather gloomy Budget. The future of house building and the Government’s manifesto promise to build 1.5 million homes appear to be in dire straits, and the state of local government finances again appears bleak and unlikely to improve. On top of all of that, the long-awaited homelessness strategy, first pledged in the Government’s manifesto a year and a half ago, continues to be late and remains unpublished.

The strategy was first promised to us in 2024, with the publication repeatedly said to be forthcoming. We were then repeatedly told by the Minister’s predecessor that it was due for publication following the conclusion of the spending review—which was six months ago. In a parliamentary question answered just last week we continued to be told that it will be published “later this year”. It is 2 December today and the year is running out. It may be advent, the season of waiting, but there are many who consider this to be an unacceptable and damaging delay, particularly the charities and homeless people waiting for the Government to take serious action. It would be a very welcome early Christmas present if the Minister were to announce its publication this morning.

In saying that, I acknowledge that the Government have not been totally idle. They have introduced some additional funding: a £69.9 million uplift to the rough sleeping prevention and recovery grant, an additional £10.9 million for supporting children experiencing homelessness, and £3 million for the rough sleeping drug and alcohol treatment programme. The funding is welcome, but as my hon. Friend the Member for Harrow East said in his opening speech and others have mentioned, funding must come with strategy and purpose and that is something we are yet to see.

As I said in this Chamber in October:

“prevention must be at the heart of any national strategy for tackling homelessness”.—[Official Report, 21 October 2025; Vol. 773, c. 312WH.]

That was a central focus in the last Government’s approach which produced £2.4 billion of funding to tackle rough sleeping and homelessness including the rough sleeping initiative and £547 million over the period from April 2022 to March 2025 before schemes such as the RSI were rolled up into one by the current Government. The rough sleeping initiative provided locally led tailored support and services for rough sleepers, providing direction and strategy at the most local levels.

The Minister’s Department has so far failed to provide itself and its fellow Departments with a national strategy. Simply spending money will not do the job, and funding without purpose or direction can actually damage efforts to achieve the critical goal of ending homelessness.

Much of the responsibility and funding for tackling homelessness lies with local government. Bills for homelessness accommodation have soared to £3.8 billion across 2024-2025—a 25% increase in a single year. There are now a record number of people in temporary accommodation, including 169,050 children in England—a 12% increase in a year. The result of that is that councils are now warning that homelessness poses one of the biggest threats to their financial viability.

Homelessness is a statutory demand-led and highly acute pressure on local government. The Government’s answer so far has not been to provide more support, but to take money away from many councils as part of their so-called fair funding formula. In introducing what my right hon. Friend the Member for Braintree (Sir James Cleverly) has called their “unfair funding” model for local authorities the Government are funnelling money away from councils predominantly in the south to send to councils predominantly in the north. It is hard to see that as anything other than a partisan cash grab and a punitive targeting of many well-run councils, especially penalising those who have historically kept council taxes low and controlled spending better.

Some of the most affected areas, including the south- east, are witnessing a large rise in homelessness and simultaneously a potentially catastrophic drop in funding thanks to the fair funding policy. How does that reconcile with the need to go further to tackle this soaring issue? The answer is that it does not. It certainly does not help that councils are being punished and losing money for the crime of being comparatively well run when they are still trying to play their role in providing temporary accommodation to those 126,040 households.

[Chris Vince]

Will the shadow Minister give way on that point?

[Gareth Bacon]

I will not. I apologise to the hon. Gentleman, because I know he cares passionately about this issue, but we are running out of time. I need to leave time for the Minister to respond and for my hon. Friend the Member for Harrow East to conclude.

The figure of 126,040 households is a 15.7% increase on 2023. The Government need to rethink this policy for the sake of local government and those who have a statutory requirement to help. It is not just local authorities that are under additional pressure. Homeless Link found that thanks to the Chancellor’s national insurance hike, the 2024 autumn Budget removed between £50 million and £60 million of vital funding from smaller organisations that provide homelessness services. It is sad that the Government’s announcements on homelessness funding, as welcome as they are, to some extent merely fill the gaps that the Treasury created.

It is also important that the Government work to make housing more affordable, including with proper funding for social and affordable homes. Unfortunately, the Government are not making the progress that they promised. On funding for affordable housing, despite the Chancellor’s boast when announcing the package at the previous spending review, the Institute for Fiscal Studies noted:

“Upon closer inspection the promise of £39bn over 10 years is less generous than on first appearance…The small print suggests spending of about £3bn a year over the next three years, which is not a million miles away from what is currently spent on the AHP”—

affordable homes programme—

“This is why enormous-sounding numbers should always merit further scrutiny”.

The Government are also failing on making social and affordable homes available. Figures show that, with the lowest number of additional homes for nearly a decade, the Government are on track to fall well short of the target of 1.5 million additional homes in this Parliament, possibly not even reaching 1 million. That is considerably worse than the 2.5 million new homes delivered by the previous Government, including 1 million in the previous Parliament, of which 750,000 were affordable homes. That was despite having to grapple with the pandemic for the better part of two years.

In conclusion, it is clear that Ministers must work more quickly and effectively to provide local authorities and charities with the strategy and direction they need. It is vital to move at a greater pace to ease the temporary accommodation crisis, get more social and affordable homes built in the most affected areas, and finally publish the homelessness strategy first promised in July 2024 but repeatedly delayed to the detriment of those relying on it to work. I look forward to the Minister’s comments.