National Plan to End Homelessness

Baroness Taylor of Stevenage Excerpts

Tuesday 16th December 2025 Lords Chamber

[Lord Bird]

To ask His Majesty’s Government what assessment they have made of whether new funding allocations to local authorities are sufficient to deliver the prevention commitments in the National Plan to End Homelessness.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, last week the Government launched their £3.5 billion national plan to end homelessness, a bold initiative informed by the voices of those with lived experience of homelessness and rough sleeping, as well as councils, mayors and homelessness organisations. Over £3 billion of that funding will go to local government through the local government finance settlement, with prevention at its core. The strategy is designed to tackle the root causes of homelessness alongside immediate action to help those experiencing homelessness now. It will bring an end to the current tension that forces councils to choose between investment in prevention and meeting temporary accommodation costs.

[Lord Bird (CB)]

With £2.8 billion spent on temporary accommodation in the last year by local authorities, forcing many of them towards bankruptcy, the £2.5 billion the Government have allocated, even if you look upon it as trying to cover the costs, is 28% short of the actual cost of temporary accommodation for local authorities. Are the Government going to do anything about allocating enough resources so that we do not have this situation where people are left on the streets because there is no temporary accommodation, and do not have the problem of our local authorities going bankrupt?

[Baroness Taylor of Stevenage (Lab)]

I am grateful for all the work the noble Lord has done in this area. The Government are very aware of the challenges councils face due to the rising demand for temporary accommodation; it has been growing in recent years and is a real challenge for them. We are committed to considering the best way to sustainably fund good-quality temporary accommodation and reduce reliance on poor-quality provision. To support this, we are working across government, including with our colleagues in the DWP, in the interministerial group on homelessness and rough sleeping to explore the impacts of subsidy rates on local authorities. This week we will announce the local government finance settlement—the first multi-year settlement in a decade—giving councils the certainty they have repeatedly asked for to enable more spending on prevention and less on crisis management. That is the answer to this in the long term.

[Baroness Lister of Burtersett (Lab)]

My Lords, the welcome national plan identifies newly recognised refugees leaving asylum support accommodation as being particularly vulnerable to homelessness, yet says nothing about the 28-day move-on period, although local authorities and voluntary organisations have criticised it as a key cause of homelessness because it does not give newly recognised refugees long enough to find independent accommodation. Will my noble friend therefore impress on the Home Office the importance of reverting to the 56 days it piloted and emphasise the importance of this to the Government’s homelessness strategy?

[Baroness Taylor of Stevenage (Lab)]

What my noble friend says is indicative of the issues we have in this area of making sure that we work across government to solve some of these problems. The Home Office has committed to strengthening data-sharing processes with councils for 100% of newly granted refugees at risk of homelessness within two days of a discontinuation of asylum support notification. This supports early intervention by enabling councils to commence homelessness assessments. We will continue to monitor the impact of all the policies, including refugee move-on, hotel occupancy, asylum accommodation costs, local community impacts and pressures on local authorities and public services. It is important that we work across government and with our partners to improve that move- on support and reduce the risk of homelessness.

[Lord Bailey of Paddington (Con)]

My Lords, as the Minister will know, one of the groups hit hardest by homelessness has been young people. Many charitable groups, such as Centrepoint, are trying to look at a different size standard so that it can be developed at a lower cost. I want to be very clear that it is only charitable organisations. What work have the Government done to support this work to see whether it is viable?

[Baroness Taylor of Stevenage (Lab)]

We had some long debates during the planning Bill about the size of accommodation and the stepping-stone type of accommodation provided in some parts of the country. The noble Baroness, Lady Thornhill, initiated those discussions. We are still discussing those issues because they are very important, as the noble Lord says. Specific content within the homelessness strategy focuses on the issues of young people, building on the national youth strategy, and will give young people the skills, connections and opportunities they need to thrive, with a key focus on prevention of homelessness among young people. We want to develop a cross- government action plan with measurable targets to reduce homelessness, particularly among care leavers under 25. We are working on this. The noble Lord makes an important point about the size of accommodation. It is still under discussion, and I will keep him in the picture on that.

[Baroness Thornhill (LD)]

My Lords, there is a real issue around the allocation of funding for homelessness prevention. While the strategy helpfully recognises this and commits to some adjustments, we still have no published needs-based formula. When will we get one? Will it set out how rent levels, housing supply and market-measured pressures are weighted? Does the Minister agree that without this it is really hard to judge whether allocations are fair and transparent and genuinely reflect local need?

[Baroness Taylor of Stevenage (Lab)]

It is very important that we continue to work with local authorities in tackling this problem. Under the new strategy, every council will publish a tailored action plan alongside its local homelessness strategy, with local targets and key outcomes. That will feed into the national picture so we can make sure that we are targeting the funding where it most needs to go. The new formulas we have devised for the local government finance settlement, which will be published later this week, are focused on making sure that the money goes where the need is and where there is less ability to raise additional funds through council tax. We are working very hard on making sure that the funding goes where the need is, and we will continue to do that. With councils now being able to set their own targets on this, we will be able to feed those into some more national targeting.

[The Lord Bishop of Derby]

My Lords, I welcome the continued investment of £185 million allocated to the rough sleeping drug and alcohol treatment programme from 2026 to 2029. But what progress has been made towards this Government’s safer streets and opportunity missions to improve support and early intervention, particularly for children and young people who are struggling with the dual crises of substance abuse and experiencing homelessness? Is this work one of the factors being used to determine which additional councils will receive this new funding?

[Baroness Taylor of Stevenage (Lab)]

Two pieces of work are going on here around the homelessness strategy and the child poverty strategy. Having set up a Housing First scheme in my local authority when I was a council leader, I know it is very important that you do not tackle just one issue. The roof over the head is key but so is support for complex needs. That is why homelessness is such a complex issue—you have to tackle the underlying issues. Those issues can be drug and alcohol abuse, poor mental health, financial capacity, chaotic lifestyles or any combination of those factors. All these things have to be worked on at the same time, which is why it is crucial that we have the interministerial working group. It is working across departments to tackle all these issues together so that we can make a real impact on homelessness.

[Lord Wigley (PC)]

My Lords, homelessness is a scandal in all parts of these islands. Is there not more scope for taking unused or underutilised buildings within local or central government and using the capital value of them to release the funds necessary to modify them and find an urgent answer to a problem that, at Christmastime, we should all be aware of?

[Baroness Taylor of Stevenage (Lab)]

I agree with the noble Lord about the scandal of homelessness. That is exacerbated in the wintertime. Of course, we want to see both more homes and more buildings generally brought back into use. The Government’s strategy on delivering more housing is looking at this from a number of different angles. Local authorities already have a wide range of powers available to help tackle long-term empty homes. We are committed to empowering their use. We outlined in the English devolution White Paper the intent to strengthen the ability to take over the management of empty homes. We will review how effectively social housing providers use their properties. This is really important. There can be nothing more demoralising if you have not got anywhere to live than to walk along streets and see empty homes. We have to tackle this; we were left with an absolute crisis and this Government are determined to make a real difference in this area.