Issued by: Ministry of Housing, Communities and Local Government

Two new funds to tackle homelessness head-on and help deliver on the national target to halve long‑term rough sleeping by the end of this Parliament

Councils and organisations helping tackle homelessness and rough sleeping will receive £50 million worth of Government investment, targeting the people and places under the most pressure.

The funding is split across two major programmes and will help deliver on the national target to halve long term rough sleeping by the end of this Parliament.

Leading the way, a £37 million Ending Homelessness in Communities Fund will supercharge the work of voluntary, community and faith groups, often the first port of call for people in crisis. This record investment will be allocated competitively to small and medium-sized organisations delivering day-to-day prevention and support services across England. The fund will be used to support projects, staffing and building improvements to expand sector capacity, strengthen community networks and develop long‑term, trauma‑informed approaches to ending rough sleeping.

A further £15 million Long-Term Rough Sleeping Innovation Programme will target the 28 areas facing the greatest long term rough sleeping pressures, including London. Funding will help partners and local authorities find smarter, more joined-up ways to get people off the streets for good, from complex case co-ordination to peer mentoring and stronger links between services.

Today’s announcements are the next step in the government’s National Plan to End Homelessness, backed by £3.6 billion. The plan makes three pledges to be achieved by the end of this Parliament: halve long-term rough sleeping, end the unlawful use of B&Bs for families, and prevent more households from becoming homeless in the first place.

This strategy sets out how the government is supporting people to have a safe and secure home. Taken together, alongside the reforms to the private rented sector and drive to build the homes the country needs, the government is committed putting a stop to the threat of homelessness for families and individuals across the country.

Housing Secretary Steve Reed said:

"Homelessness is one of the most profound challenges we face as a society.

"I’ve seen for myself the vital work that organisations are doing to help support people who have nowhere to live.

"This announcement is about helping those incredible frontline workers.

"It is the next step in our National Plan to End Homelessness which will finally tackle this shameful crisis on our streets."

Homelessness Minister Alison McGovern said:

"As the coldest months of the year and wet weather continue, for many, the harsh reality of homelessness becomes harder than ever – particularly for someone bedding down on the street.

"And we know the picture is even starker for women with domestic abuse being a significant driver of homelessness. No one should end up on the streets because of violence at home.

"This package strengthens the organisations who stand beside people at their most vulnerable. By supporting frontline teams, encouraging fresh thinking and bringing services together, we’re working to ensure people get the stability and hope they need to build a better future."

The Mayor of London, Sadiq Khan, said:

"I welcome this further investment to help tackle and prevent long-term rough sleeping on our streets, ensuring those most in need receive the care and support they deserve.

"I have always been clear that no one should have to sleep rough on our streets and every Londoner deserves a safe and secure home. London boroughs and voluntary, community and faith organisations are critical to this work, and we’ll continue to work in partnership with them to ensure the new funding supports people with a longer history of rough sleeping.

"I remain committed to ending rough sleeping in London by 2030 but clearly there is still more to do which is why I’ll continue working closely with the Government, London Councils, boroughs and partners through the Ending Homelessness Accelerator Programme to build a safer, fairer city for everyone."

Rick Henderson, CEO of Homeless Link, said:

"Preventing and ending rough sleeping must be a priority and we welcome the much needed new funding announced by the Government. In particular, we are delighted to support the Ending Homelessness in Communities Fund, which contributes additional, strategic funding for voluntary, community and faith sector organisations.

"In recognising the important role of these experienced and trusted organisations in delivering early intervention, crisis, and basic-needs support in their communities, this fund will help ensure that homelessness support meets local need more effectively."

Bonnie Williams, Chief Executive of Housing Justice:

"We welcome the Government’s new Homelessness Strategy, particularly its stronger emphasis on prevention and early intervention. Preventing people from reaching crisis point, improving pathways out of temporary accommodation, and strengthening partnership working across housing, health and local government will be essential if we are to see sustained change.

"The dedicated Ending Homelessness in Communities Funding is also a positive step. It has the potential to enable the voluntary, community and faith sector to play an even greater role in the solution providing compassionate, relational support that helps people move from crisis to stability, sustain tenancies, and rebuild fulfilling lives within their communities. We hope that this renewed focus on prevention and community-based solutions will mean that this time next year we see a significant and sustained reduction in rough sleeping."

Domestic abuse is a significant driver of homelessness, and research from the Rough Sleeping Questionnaire 2025 shows that nearly 70% of women experiencing rough sleeping in the past year had experienced domestic abuse since age 16. Schemes like this reinforces the Government’s commitment, set out in the National Plan for Homelessness, to prevent homelessness among survivors of domestic abuse wherever possible. The Government has set a target of halving violence against women and girls within a decade, and taking steps to prevent homelessness for survivors will be a vital part of this.

The new funds announced today follow major steps from the government to tackle the wider issues that currently result in a family being made homeless or threatened with homelessness every five minutes, including ending no fault evictions through the Renters’ Rights Act, boosting the supply of good-quality temporary accommodation backed by £950 million, and investing £39 billion in the biggest boost to social and affordable housing in a generation.

ENDS

Notes to editors:

• The Ending Homelessness in Communities Fund is a new three-year grant programme running from 2026 to 2029, open to voluntary, community and faith-based organisations operating in England with an annual income below £5 million. Applications open Monday 23 February and close at midday on 31 Marc. The prospectus can be seen here.

• The Long-Term Rough Sleeping Innovation Programme runs from April 2026 to 2029 across London and 27 other local areas, supporting those facing the greatest rough sleeping pressures to develop more personalised and comprehensive support for people with complex needs. As part of the Innovation Programme, new Long-Term Rough Sleeping Partnership Plans will be designed together with local organisations to make sure they coordinate their support and spread what works across the country.

They are the next step in delivering our National Plan to End Homelessness, which by the end of this Parliament will:

• Increase prevention rates to protect thousands more households from homelessness. The proposed ‘Duty to Collaborate’ will require public bodies to work together to prevent homelessness. This sits alongside cross-government targets, aiming to halve the number becoming homeless after leaving prison and ensure no eligible person is discharged to the streets post-hospital. The strategy also sets an ambition that no one should become homeless from a public institution.

• Halve long-term rough sleeping by focusing support where it’s needed most. Through the Homelessness, Rough Sleeping and Domestic Abuse Grant as part of the Local Government Finance Settlement, £159 million has been funded for supported housing and will target 40 local areas with the greatest need to help prevent homelessness and rough sleeping before it occurs.

• End unlawful B&B use for families, relieving households living in unsuitable conditions and building on commitments to prevent mothers and newborns being discharged into this accommodation.

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