Thousands on the brink of homelessness will receive lifechanging support to remain in their homes, thanks to new emergency funding of £30 million for homelessness services announced today. 

Today’s funding is targeted at 295 areas that are facing the highest risks of homelessness through housing costs and rent arrears. The cash will be specifically given to councils to step in early and keep people in their homes before eviction notices are served, or support people off the streets into accommodation – a lifeline for thousands to regain financial stability, stay in their communities and maintain access to local GPs and support networks. 

For councils, this emergency funding means fewer people reaching crisis point and ending up on the streets which will free up resources and ease demand on social services, healthcare, and emergency housing teams. 

Last year alone, 146,360 households turned to their council for help, with many on the brink of eviction through no fault of their own, whether from a sudden job loss, a health emergency, an unexpected bill, or a relationship breakdown.  

It brings the total Winter Pressures Funding for homelessness and rough sleeping to £60 million this year, with this extra £30 million to bolster resources at councils to act fast when negotiating with landlords, covering emergency rent shortfalls, and making sure people can get on with living their lives in safe and secure housing. This builds on the largest-ever investment in homelessness prevention services of almost £1 billion.

Minister for Homelessness, Rushanara Ali said:

“No one should be forced live in constant fear of losing their home and too many people are being pushed to the brink of homelessness as a direct consequence of the system we’ve inherited. 

“That’s why I’m providing an extra £30 million in emergency support for councils– taking real, immediate action to stop people falling through the cracks, stay in their homes, and help them rebuild their lives. 

“Our Plan for Change is tackling the worst housing crisis in a generation by delivering the biggest boost in social and affordable housing in a generation, fixing the broken rental market and getting us back on track to end homelessness once and for all.”

The Deputy Prime Minister has personally directed the Ministry of Housing to prioritise remaining departmental funds towards homelessness support. This comes as her dedicated Inter-Ministerial Group is developing a long-term strategy – with ministers across government – to tackle the root causes of rough sleeping and get the country back on track to ending homelessness for good.

This comes as the government’s landmark Renters’ Rights Bill remains on track to become law this year that will abolish one of the leading causes of homelessness, Section 21 ‘no fault’ evictions. This is alongside stopping rental bidding wars for tenancies and empowering tenants to challenge unreasonable rent increases, providing much-needed stability for millions of working people and families.

Today’s emergency cash injection is just one branch of the government’s Plan for Change to raise living standards for working people and families, strengthen rights and protections for tenants, and drive forward the biggest overhaul of the private rented sector in over 30 years.

The government recently announced a further £20 million to ensure rough sleepers have a safe, warm place to stay with hot meals and specialist care. This is on top of the £10 million announced before Christmas, providing additional resources for emergency accommodation and targeted interventions aimed at getting people off the streets and into stable housing.

As part of long-overdue reforms to the Right to Buy scheme, councils can now keep all receipts from sales to invest in building and buying more homes. On top of this, councils received an additional £450 million last year to secure and create housing for families at risk of homelessness. 

Government investment in housing has now increased to £5 billion for this year, including a top-up of £800 million for the existing Affordable Homes Programme, which is supporting efforts to build tens of thousands of affordable and social homes across the country.

Further information

Last year, the government launched an emergency £10 million package for rough sleepers, with a further £20 million in January.

A full breakdown of funding allocations for each council is available here.