Homelessness: Funding

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Tuesday 2nd December 2025

(1 day, 6 hours ago)

Westminster Hall
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Alison McGovern Portrait The Minister for Local Government and Homelessness (Alison McGovern)
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It is a pleasure to serve under your chairship, Mr Vickers. I congratulate the hon. Member for Harrow East (Bob Blackman) on his continued work on homelessness. He is respected across the House, as the shadow Minister, the hon. Member for Orpington (Gareth Bacon), said, and we are all grateful for his work.

I thank the 14 hon. Members who have contributed to the debate. I again agree with the shadow Minister that that number, along with the 17 hon. Members who spoke in the last such debate, sends a message to people outside this place that tackling homelessness is a priority for Members on both sides of the House of Commons. I will encourage all officials in the Department to read this debate to understand where MPs are coming from and the priority that this subject represents for them. The Supported Housing (Regulatory Oversight) Act 2023 of the hon. Member for Harrow East is a priority for me, and I want to work with him to implement it. I hear what he said about its delay and take that as an instruction to work harder to get it done.

More broadly, I thank hon. Members for their thoughtful contributions. As has been said, although homelessness is a problem of not having enough houses, it is not just a housing problem; it is a profound injustice that devastates lives. Everyone has a right to a roof over their head. Homelessness is a visible reminder that our society falls short in the duties that we owe to one another—something that the Labour Government are determined to change.

Some hon. Members mentioned the homelessness strategy, about which I can only say, “Watch this space.” I am determined to get on and publish it before Christmas, and I am really keen to work cross-party with hon. Members to make it work. We had an excellent parliamentary engagement session last week, which was less formal than this debate, and I think it works really well to have a combination of informal opportunities and debates such as this for hon. Members to talk through what they want to see in the strategy.

As we move towards the delivery phase of the homelessness strategy, it will be right for us to continue holding those parliamentary engagement sessions on a range of issues to make sure that hon. Members can feed into them. Last week, we talked through the preventive nature of the strategy from the point of view of housing and affordability, and how we can enable the support that the most vulnerable people need. A couple of hon. Members also made important points about people with complex needs.

You will forgive me, Mr Vickers, if I briefly mention the Budget. I have no doubt that, as with any Budget, not every hon. Member got all their heart’s desires, but ending the two-child limit was one of mine. I have met many kids in temporary accommodation, or otherwise living in poverty, who will benefit. I think of those children every day when I walk into the Department, and what we can collectively do to give them their futures back.

As my hon. Friend the Member for Cities of London and Westminster (Rachel Blake) said, we announced in the Budget that the Chief Secretary to the Treasury will lead a review, involving me and other Ministers, of value for money in homelessness services. It will include looking at ways to improve the supply of good value for money and good quality temporary accommodation and supported housing, such as through greater co-ordination in planning and procurement in different parts of the state.

A couple of hon. Members, including my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon)—who I commend for his work as my predecessor as Minister for Local Government, setting in train a really important set of reforms that will help in this area—mentioned the absolutely dire state of temporary accommodation, both for the kids in it and for the taxpayer, and the fact that we are not getting value for money at the moment. I encourage all Members to engage with that value for money review; we want to see some of the worst cases so that we can provide an evidence base.

Ayoub Khan Portrait Ayoub Khan
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The Minister is making some powerful points in recognition of the challenges that we face. On the Budget, it will always be difficult to balance the books and maintain the status quo. Does she accept that the mammoth task of addressing homelessness can be achieved only with the substantial amount of investment that can come through wealth taxes—with wealthy people paying more for the vulnerable in society?

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Alison McGovern Portrait Alison McGovern
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I think the record will show that the Government have taken action to bring in more tax from people who owe it—from those at the top of society—and that, because we have done so, we have been able to get rid of the two-child limit and commit £39 billion to build more social and affordable housing. That investment will make a difference in tackling the social injustice of homelessness.

As a few hon. Members mentioned, we are taking action now, even before we have published the strategy. This year, we have invested more than £1 billion— the largest annual investment to date—to enable local authorities to invest in prevention, provide tailored support and reduce the reliance on costly short-term solutions.

Several hon. Members also mentioned the tension that exists between ringfencing funding and allowing local authorities the flexibility to lead solutions that work for their place. Following the work of my predecessor, I am very glad that we have been able to provide local authorities with a three-year funding settlement and reconnect council funding with deprivation. The twin effects of those policies will help in that area.

We as Members of Parliament have to recognise, however, that there is a tension between curtailing local authorities’ freedom through things like ringfencing, which might target resources in the right place, and enabling them to tailor support to their local area. We will square that circle through the local government outcomes framework that we will publish shortly with the full settlement. We will show how we will have visibility and transparency over outcomes so that we can understand exactly where the problems are and take steps to tackle them. I look forward to engaging with all hon. Members on that framework.

We know that our investment in councils on homelessness is making a difference. The latest annual figures show early signs of progress, with 11% fewer households in bed-and-breakfast accommodation. That is a small bit of progress, but I agree with all hon. Members who have expressed real concern about where we are at the moment; we still have a long way to go.

Far too many people are experiencing homelessness and we have to provide the homes that they need, as I have said. Alongside increasing supply, as I mentioned, we need to reform the private rented sector. Section 21 no-fault evictions are a leading cause of homelessness, forcing thousands of families into crisis every year, but we have abolished them through the Renters’ Rights Act 2025. The best way to prevent homelessness is to stop it before it starts, and that is what the Renters’ Rights Act will do. We have also strengthened protections for the social housing stock by reforming the right to buy.

Many hon. Members mentioned supported housing, which is crucial. I say to the hon. Member for Harrow East that I am working very hard on the implementation of his Act. It is vital that we drive out rogue landlords. As I mentioned, I will welcome the engagement of hon. Members on our value for money review, because we know that we desperately need more resources in this area and some of the resources that are there at the moment are not being spent in the way that we as Members of Parliament would wish. We have a collective duty to resolve that situation in the strategy’s implementation phase.

I will conclude and allow the hon. Member for Harrow East to say a few words. In the end, we want to see lasting change, whether through social homes being built or our goal to improve disposable incomes so that people are less likely to be unable to fulfil their tenancy. Those are the steps that we can take to end homelessness for good and make sure, for anybody experiencing homelessness, that it is a brief period and never repeated. We need the cross-party collaboration that we have demonstrated again here today, and a whole-system approach. On hospital discharge, on prisons, on victims of domestic abuse and on veterans, I have engaged with Ministers in those areas and I will continue to do so. We have an interministerial group meeting coming up before we publish the strategy, and I can report that all those other Departments are engaging enthusiastically on the strategy.

We need to prevent homelessness. That will mean less cost for the state and, crucially, much better outcomes for families and individuals who desperately need better support. I thank all hon. Members who have contributed today. It has been inspiring, again, to understand how important this issue is. Most of all, I thank the hon. Member for Harrow East for securing the debate. I have absolutely no doubt that when it comes to debates in Westminster Hall on this subject, this ain’t going to be the last.