Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 15
15
Accepted
Ending homelessness strategy requires cross-government buy-in, collaboration, clear actions, and funding.
Conclusion
It is essential that the strategy to end homelessness has buy-in across all government departments and local authorities, and so we welcome the creation of the Inter-Ministerial Group on Homelessness and Rough Sleeping to bring about this collaboration. It is vital that all invited government departments engage fully in the preparation of the strategy. The strategy must build on the previous work of homelessness organisations and independent reports, in order to agree the specific actions and funding commitments which will bring about significant progress towards ending homelessness during this Parliament. (Conclusion, Paragraph 71)
Government Response Summary
The government highlighted existing and increased funding for housing support, Local Housing Allowance, the Household Support Fund, Discretionary Housing Payments, and the Homelessness Prevention Grant, stating these measures contribute to preventing homelessness.
Government Response
Accepted
HM Government
Accepted
44. The Government currently spends around £34 billion annually on housing support including around £12 billion in the private rented sector. Local Housing Allowance (LHA) rates, which set the maximum level of support in the private rented sector, were last increased in April 2024 costing approximately £7 billion over 5 years. 45. When considering LHA for 2025/26, the Government considered a range of factors, such as the rental market; impact of LHA, including the impact on cross-government issues such as homelessness; and the fact that rates had been increased the previous year. In the challenging fiscal context, at Autumn Budget the Government prioritised investing £1 billion in funding for both the Household Support Fund (HSF) and Discretionary Housing Payments (DHPs) (including Barnett impacts) for 2025/26, maintaining DHP funding at the same levels in England and Wales. This allows councils to provide discretionary support to those most in need. 46. DWP continues to work closely with MHCLG to make sure that links between housing and benefit policy are considered, including when the LHA rates for 2025/26 were considered, and through the homelessness Inter-Ministerial Group. Any future decisions on LHA will be taken in the context of the Government’s missions; goals on housing; and which measures can best meet Government ambitions within the challenging fiscal context. The most recent increase in April 2024 cost around £7 billion over 5 years. 47. We have increased the Homelessness Prevention Grant (HPG) by £192.9 million in 2025/26 and created the 49% ringfence to be spent on prevention, relief and staffing activities, so that more work can be done to prevent families from entering temporary accommodation and save costs in the long-term. 48. The HPG was never intended to meet all costs of temporary accommodation. Local authorities can also draw on the wider government settlement, which is over £69 billion in 2025/26. The HPG increase of £192.9 million also took into account the increase in temporary accommodation pressures in 2025/26. The decision on the level of the prevention ringfence was made based on local authority spend declarations submitted in 2023/24, which showed that an average of 49% of total HPG funding was spent across these activities. We will continue to monitor local authority spend throughout 2025/26.