UK Government Injects Over £50 Million Into Homelessness Support Services to Cut Long Term Rough Sleeping Across England

More than £50 million is being poured into the fight against homelessness, with ministers saying the money will go straight to the communities feeling the strain most.

The funding is aimed squarely at reducing long-term rough sleeping — and it’s part of a bigger promise to cut it in half before this Parliament wraps up.

For councils and charities on the frontline, this isn’t just another policy announcement.

It’s practical backing — cash for staff, buildings, projects and new ideas — at a time when demand for support continues to outstrip resources in many parts of England.

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Two Funds, One Big Target

The money is split across two major programmes, each designed to tackle the crisis from a slightly different angle.

The larger share — £37 million — will go into a new Ending Homelessness in Communities Fund. This pot is aimed at small and medium-sized voluntary, community and faith groups.

These are often the organisations people turn to first when they lose a home, flee abuse or find themselves sleeping rough.

Grants will be handed out competitively and can be used for everything from hiring support workers to upgrading buildings and expanding prevention services.

The focus is on long-term, trauma-informed help — not just getting someone off the street for a night, but helping them stay off it for good.

Alongside that sits a £15 million Long-Term Rough Sleeping Innovation Programme. This is more targeted.

It will support 28 areas facing the highest levels of persistent rough sleeping, including London.

The idea is to test smarter, more coordinated approaches — think complex case management, peer mentoring and stronger partnerships between councils, housing teams, health services and charities.

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Part of a Much Bigger Plan

This funding doesn’t stand alone. It forms part of the government’s £3.6 billion National Plan to End Homelessness, which sets out three headline goals to hit before the end of this Parliament.

First, halve long-term rough sleeping.

Second, end the unlawful use of bed and breakfast accommodation for families.

Third, stop more households from becoming homeless in the first place.

It’s a tall order. Government figures show that in England a family is made homeless or threatened with homelessness roughly every five minutes.

Rising rents, shortages of affordable housing and the cost of living crisis have all fed into the pressure.

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Ministers Say Prevention Is Key

Housing Secretary Steve Reed described homelessness as “one of the most profound challenges we face as a society,” stressing that the new funding is about backing the people who deal with it face-to-face every day.

Homelessness Minister Alison McGovern highlighted the seasonal reality — that winter and wet weather make life even harsher for those sleeping outside — and drew attention to the strong link between domestic abuse and homelessness.

Research from the 2025 Rough Sleeping Questionnaire found that nearly 70 percent of women who had slept rough in the previous year had experienced domestic abuse since the age of 16.

That connection has shaped the government’s wider pledge to halve violence against women and girls within a decade, with homelessness prevention forming part of that strategy.

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London and the Frontline Response

London, where rough sleeping has remained stubbornly high compared with other regions, is one of the 28 focus areas.

Mayor Sadiq Khan welcomed the extra support and reiterated his ambition to end rough sleeping in the capital by 2030.

Charity leaders also responded positively.

Rick Henderson, CEO of Homeless Link, said the new community fund recognises the crucial role of grassroots organisations in early intervention and crisis support.

Bonnie Williams, Chief Executive of Housing Justice, pointed out that preventing people from ever reaching crisis point — and strengthening collaboration between housing, health and local government — will be essential if the funding is to deliver lasting change.

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Addressing the Root Causes

Beyond these two new funds, the government has been rolling out broader housing reforms.

The Renters’ Rights Act is set to end so-called “no fault” evictions, a move campaigners have long argued is essential to stopping families being pushed out with little warning.

There’s also £950 million earmarked to improve the supply and quality of temporary accommodation, and a £39 billion investment billed as the biggest boost to social and affordable housing in a generation.

Another proposal — a new “Duty to Collaborate” — would require public bodies to work together to prevent homelessness, particularly when someone leaves prison or hospital.

The ambition is that no one should exit a public institution directly onto the streets.

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What’s Next?

Applications for the Ending Homelessness in Communities Fund are already open and will run until the end of March.

The grants will cover a three-year period from 2026 to 2029, giving organisations some longer-term financial stability rather than short bursts of funding.

The Innovation Programme will also run until 2029, with local areas developing partnership plans designed to share successful approaches nationwide.

The real test will be in the results. Ministers have set a clear target: halve long-term rough sleeping before the next election.

Over the coming years, data on street counts, prevention rates and temporary accommodation use will show whether this injection of funding has truly shifted the dial.

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Summary

The government has announced more than £50 million in new funding to tackle homelessness across England, split between a £37 million Ending Homelessness in Communities Fund and a £15 million Long-Term Rough Sleeping Innovation Programme.

The investment supports the broader £3.6 billion National Plan to End Homelessness, which aims to halve long-term rough sleeping, end unlawful B&B use for families and prevent more households from becoming homeless.

With a strong focus on prevention, domestic abuse survivors and coordinated local support, ministers say this marks the next step in addressing one of the country’s most persistent social challenges.