Recommendation 4

The Department has provided a number of different funding streams to local authorities to cover the pandemic response for people sleeping rough, but many are short-term and reactive, and the Department does not have a cohesive long- term funding plan for its commitment to end rough sleeping. Local authorities expect to spend £192 million on rehousing people sleeping rough by the end of March 2021. The Department provided £4.6 billion between March and October 2020 to cover additional costs resulting from the COVID-19 response, but rough sleeping is only one of a number of priorities covered by this un-ringfenced funding. The Department also brought forward and augmented existing funding, with a total of £700 million available to local authorities for tackling homelessness in 2020–21. More recent funding announcements have seen a series of smaller amounts allocated as a reaction to immediate priorities, rather than to address a more strategic long- term plan, which would provide more certainty to the many small organisations in the voluntary sector working with people sleeping rough. These groups also face high levels of bureaucracy when applying for relatively small ad-hoc grants. Recommendation: To inform the review of its strategy, the Department should reassess the level of funding required to meet its target of ending rough sleeping and align all individual streams of funding for tackling rough sleeping to this end. This should address the importance of multi-year funding certainty for local authorities and the voluntary sector. In doing so, it should state how it will assess the long-term value for money of its spending on rough sleeping and COVID-19: housing people sleeping rough 7 homelessness, focusing on interventions which do most to reduce the long-term public costs associated with both rough sleeping and housing people in temporary accommodation.