Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Deferred
Submissions highlight key priorities for homelessness strategy, including cross-government and voluntary sector support
Recommendation
Several written submissions to our inquiry suggested principles or priorities for a homelessness strategy. Crisis, for example, emphasised the need for evidence-based interventions that both support people to move on from homelessness for good and prevent it from happening in the first place.35 Dr David Christie suggested that a substantial input of funds should be directed toward increasing the capacity and skill-base of the voluntary sector.36 And Salford City Council called for a genuinely cross-government approach, in which bodies such as the Home Office and DWP combine to help remedy the pressures on local authorities.37
Government Response Summary
The government agrees to consolidate rough sleeping and single homelessness grants into a single grant for 2025-26 and explore options for aligning Homelessness Prevention Grant funding with rough sleeping funding from 2026-27, with a consultation to be held.
Government Response
Deferred
HM Government
Deferred
5a. PAC recommendation: In its Treasury Minute response, MHCLG should provide the Committee with further details of how its proposed cross-government homelessness strategy will generate practical improvements, including through: • a consolidation of the funding to tackle homelessness into far fewer streams; 5.1 The government agrees with the Committee’s recommendation. Target implementation date: after Spending Review 2025 5.2 For 2025-26, MHCLG will be consolidating its main rough sleeping and single homelessness focused grants (Rough Sleeping Initiative, which includes Housing First funding, and Accommodation for Ex Offenders) into a single grant outside of the Settlement, to run alongside the Homelessness Prevention Grant. These two, targeted grants will put an end to bidding processes and enable local authorities to more efficiently and flexibly plan and deliver services. 5.3 From 2026-27, MHCLG is planning reform of the wider local government finance system with a consultation currently open on the principles and objectives that underpin these changes. This will include an updated assessment of local authorities’ need and their available resources. In addition to reforming how funding is distributed, the government has committed to simplifying the wider local funding landscape, reducing the number of individual grants and consolidating them into the Local Government Finance Settlement where possible. This will provide local authorities with more flexibility to meet the needs of local people, and to decide how best to deliver on national priorities. 5.4 As part of these reforms, MHCLG will explore options for aligning Homelessness Prevention Grant funding with rough sleeping funding and consider whether and how to consolidate homelessness grant funding into the Local Government Finance Settlement. The 22 government is committed to resetting the relationship with local government and providing greater freedoms. MHCLG is considering how to deliver this consolidation in a way that ensures homelessness pressures are addressed and supports government’s commitment to getting back on track to ending homelessness, alongside meeting these wider ambitions.