Funding Homelessness Services in Scotland: Policy Response

Political and senior management support for homelessness services over the past five years has resulted in cuts to budgets being relatively small compared to some other local authority services for the authorities interviewed.

Since the last research into this issue in 2012 there has been a considerable shift, from an overall theme of protection of homelessness budgets and investment, to a strong drive for efficiencies and lean service delivery.

Changes to the funding of temporary accommodation present a major challenge, including in terms of maintaining accommodation standards and the impact on funding for core services. A new model of funding should be pursued by the Scottish Government and COSLA that recognises and supports the full costs of delivering temporary accommodation and homelessness services.

The percentage distance of temporary accommodation charges from the LHA ranged from 63% below to 282% above the LHA rate. Local authorities will need to review rents in response to the funding changes.

With increased cuts on the horizon, the specialised, person-centred services and prevention activity developed in line with the housing options approach could be at risk.
Shelter Scotland wants to see local authority budget holders deliver a renewed focus on investment in the prevention of homelessness. The Scottish Government should consider stimulating a wider range of funding methods and innovative funding streams to mitigate against the potential regression of services away from improvements made in the past five years.