Chancellor to confirm additional funding for rough sleeping initiative
Chancellor John Healey will use his Budget statement on Wednesday to confirm an additional £432 million aimed at addressing rough sleeping, reports BritPanorama.
This new allocation will effectively double the funding available for tackling the issue, according to an announcement made ahead of the statement.
In August, Greater Manchester Mayor Andy Burnham pledged to offer every rough sleeper in England a pathway off the streets by Christmas. This initiative forms part of a broader strategy to tackle homelessness across the country.
Prime Minister Burnham will convene private firms, charities, and local leaders at a rough sleeping summit at Downing Street on Monday to consider collaborative strategies for tackling the issue.
Mr Burnham affirmed that “every part of society” needs to contribute to ending rough sleeping, underscoring the need for a collective approach.
“Rough sleeping isn’t a fact of life. It’s a thing governments either choose to accept or don’t,” he stated. “Well, I don’t accept it. That’s why we’re doubling funding so that people aren’t just offered a safe route off the streets this winter but have that same support right through the rest of this parliament, too. But we can’t do it alone. If we’re going to end rough sleeping, we need every part of society behind us on this.”
The most recent annual statistics indicated approximately 4,793 individuals were sleeping rough on a single night in autumn 2025 in England.
This new Budget funding comes in addition to £442 million previously committed, and will allow the rough sleeping programme to extend until the end of the current parliament in 2029.
Participants at the summit will include the National Housing Federation, which plans to collaborate with housing associations to identify at least 2,000 potential homes and bed spaces. Beauty company L’Oréal Group will initiate a social salon partnership with St Mungo’s and Haircuts4Homeless, while Virgin Media O2 will offer digital support to organisations working with the homeless.
Other notable attendees will include the Salvation Army, Ikea, the Morrisons Foundation, and Comic Relief.
Housing Secretary Angela Rayner remarked, “This is a big ambition – we know that. But we will not back down from making sure everyone has the offer of a route off the streets this Christmas. This summit is about bringing every part of society together behind that mission.”
Thierry Cheval, head of L’Oréal Group UK and Ireland, highlighted that “beauty plays an essential role in restoring dignity and a positive sense of self.” He added, “For people rebuilding their lives, this simple act of care provides a crucial boost in confidence and wellbeing as they re-engage with the world and take their next steps towards social integration.”
Mairi MacRae, acting chief executive at the homelessness charity Shelter, stated that matching monetary contributions with new commitments from businesses, local leaders, and charities demonstrates a genuine willingness to choose to end rough sleeping as a society. She added, “To keep people from returning to the streets and eradicate homelessness in all its forms, the government must not waver from its promise to deliver a council housing revolution.”
Mr Burnham previously pledged as his “first instruction” on day one in No 10 in July to “finally end long-term, rough sleeping across the UK at the earliest opportunity.” However, he has faced criticism from the Conservatives regarding his record as mayor of Greater Manchester on this issue.
Shadow Housing Secretary Katie Lam commented, “Burnham is throwing another £432 million at a problem he failed to solve in Greater Manchester. Under Labour, rough sleeping has hit record highs – yet their answer is always more taxpayers’ money and more empty promises. Healey must use his Budget this week to cut taxes for working people, get the ballooning benefits bill under control, and stop pushing up energy prices.”
The £432 million will be formally confirmed in the Chancellor’s statement on Wednesday, supplementing the £442 million already allocated.
