Homeless sector at ‘breaking point’ as Rachel Reeves told to safeguard funding in Autumn Budget

Homeless Link, which coordinated the letter said funding is on a “cliff-edge" as rough sleeping rose by 27 per cent in 2023 and 60 per cent since 2021.

Some services are facing cutbacks and redundancies, but others may need to close.

Responding to the letter, Homeless Link CEO Rick Henderson said: “Beyond the next financial year, there are deep flaws with the current system of homelessness funding that need fixing.”

Funding which could be lost by April 2025 includes £548million Rough Sleeping Initiative (RSI) funding and £435million Rough Sleeping Accommodation Programme (RSAP) funding, says Homeless Link.

“It must therefore be an important priority of the Government to re-shape this picture through delivering a ring-fenced homelessness funding system from 2026/27 onward.”

In Mansfield, Nottinghamshire homelessness has tripled in recent years.

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Rough sleeping numbers have “increased dramatically” said Steph Reed, Senior Street Outreach Team at Framework.

“There's just not enough suitable accommodation for people.”

A lack of social housing and an increase in prison releases is putting pressure on an already saturated sector.

“We’re picking them up because they're rough sleeping,” said Steph.

Framework, a charity in the Midlands, is facing a shortfall of £189,122.

“We’ve seen an explosion of homelessness and massive increases in terms of the need of people,” said Claire McGonigle, Deputy Chief Executive of Framework.

“The system is completely blocked up.”

“The housing crisis is unprecedented,” she said. “There are no affordable units for people to live in.”

The overwhelmed system is making it harder to help people with ‘complex needs’ which could include PTSD and alcohol or drug abuse.

“The wrap-around service that people need to recover is just at breaking point,” said Claire.

A Ministry of Housing, Communities and Local Government spokesperson said: “We have inherited homelessness levels which are far too high and this is having a devastating impact on people’s lives.”

“We are taking action by setting up a dedicated Inter-Ministerial Group, chaired by the Deputy Prime Minister, that brings together ministers from across Government to develop a long-term strategy to get us back on track to end homelessness.

“Local authorities and their partners deliver vital work to tackle rough sleeping and funding allocations will be set out following the Budget.”