Funding package announced to tackle homelessness

The Deputy Prime Minister, John Prescott, has announced a £150m funding package for new action to prevent and reduce homelessness.

An extra £90 million will be targeted at improving the condition of hostel accommodation and the services they provide, to help rough sleepers make a permanent move away from the streets.

A further £60 million will be allocated to local authorities and voluntary sector agencies over 2005 to 2006, to deliver "front line services" to reduce homelessness. This includes drug rehabilitation treatment, mediation to resolve family and relationship problems and support for women experiencing domestic violence.

Statistics released today show these initiatives are beginning to work, with the number of new homeless cases falling by 11% during 2004 in comparison with the same period last year.

Mr Prescott said that the government was committed to reducing the number of homeless households in temporary accommodation, which have risen to 100,810, with more than 80% of these households living in good quality self-contained homes.

An extra 10,000 social homes a year by 2008 were announced in the Spending Review in July - bringing the total of new social homes to more than 75,000 over the next three years.

Mr Prescott said "good progress" had been made in reducing the most damaging forms of homelessness.

He said: "We have ended the scandal of homeless families living long-term in bed and breakfast hotels, and reduced rough sleeping by more than 70 per cent… We are determined to take action to reduce the number of households in temporary accommodation. Today's £150 million funding package will help by preventing homelessness in the first place. This is backed up with sustained investment to improve the supply of social homes."

Welcoming the funding package, Jenny Edwards, Chief Executive of Homeless Link, said: "Hostels provide vital support to homeless people who have high levels of need. We welcome this major investment in the hostel environment, where crucial work takes place.

"This funding will make a real difference, and enable hostels to offer a wider range of services which are better focused on the needs of the individual."

(SP/MB)