Homelessness: Funding

Patrick Hurley Excerpts

Tuesday 2nd December 2025 Westminster Hall

[Patrick Hurley (Southport) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank the hon. Member for Harrow East (Bob Blackman) for securing the debate.

The latest annual rough sleeping snapshot has recorded thousands of people sleeping rough—just 2% below the highest level ever recorded. I am afraid to say that it is not getting better quickly enough. Monthly data still showed a 5% rise in rough sleeping between last June and this June. Temporary accommodation has already reached record highs in the recent period. At the very moment when demand for housing is soaring, there is still not enough support for the people who need it most. Nearly half of the homelessness services that we have across the country are now reported to be at risk of closure, and the number of bed spaces available has fallen by 43% over the last 17 years.

As with so much that has gone wrong in this country over the last couple of decades, the root cause of all this is the underfunding and public sector cuts that we saw under the previous Government, led by a short-termist, narrow focus that wilfully ignored the tried and tested ways for economies to get out of the growth doom loop that we have been in. What we need to do is stop storing up more problems in years to come and start addressing things like the homelessness emergency head-on. That means ensuring that services are properly funded to provide safe, year-round bed spaces. It means making sure that new regulations on supported accommodation do not unintentionally punish good providers. It means reversing Tory Government decisions that actively drive homelessness, most notably the freeze to the local housing allowance and the benefit cap—things that make it almost impossible for many households to access the stable housing that they need.

In addition, we need cross-departmental working. Ending homelessness cannot be the responsibility of just one single Department. Decisions in health, justice and welfare, immigration—Departments across the board—all shape who becomes homeless and who does not. This is not the sort of thing that might get the pulses racing, but we need to ensure shared accountability and a shared delivery agenda across Government, not just here in Westminster and Whitehall but through the devolved layers of government, especially at the new strategic authority level.

We all come into politics for good reasons. The moral case for action is clear, as is the financial case. In that vein, I want to highlight the importance, from an efficiency perspective, of Housing First. The Housing First model has consistently demonstrated its effectiveness, here and internationally. It is based on a simple principle: first and foremost providing people with a stable home, then wrapping support around them. It prioritises dignity, choice and long-term stability, and by dealing with the root causes of social issues, it helps the state save money.

The Government’s own evaluation of the three national Housing First pilots confirms what frontline service providers have long known: the model delivers good value for money, achieves remarkable tenancy sustainment rates, reduces rough sleeping, and leads to improvements across health, wellbeing and wider metrics. Crucially, it works for people with the most complex needs—those who have been systematically failed by traditional models of accommodation. Housing First can help us break the cycle of homelessness, crisis care and retraumatisation, which leads to more homelessness. When properly funded and scaled, it can prevent rough sleeping, reduce demand on the NHS and the criminal justice system, and help people to rebuild their lives for good.

If we are serious about combating homelessness, in particular rough sleeping, we should protect and expand Housing First. That requires long-term, ringfenced funding, and a national commitment to scaling provision and to ensuring that it is embedded in the wider homelessness strategy for Government.

I thank the Chair and colleagues for their attention, and I look forward to hearing the Minister’s comments.