Government commits extra £432m to get rough sleepers off streets by Christmas

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Chancellor John Healey will use his Budget statement on Wednesday to confirm an additional £432m aimed at addressing rough sleeping.

The money will double the funding pot for tackling the problem, according to an announcement made ahead of the statement.

Andy Burnham pledged in August to offer every rough sleeper in England a pathway off the streets by Christmas.

The prime minister will bring private firms, charities and local leaders together at a rough sleeping summit at Downing Street on Monday to consider ways of tackling the issue.

Mr Burnham said that “every part of society” needs to contribute to ending rough sleeping.

“Rough sleeping isn’t a fact of life. It’s a thing governments either choose to accept or don’t,” he said.

“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 up-to-date annual national statistics estimated there were 4,793 people sleeping rough on a single night in autumn 2025 in England.

The new Budget funding comes on top of £442m committed earlier this year.

It will allow the rough sleeping programme to continue until the end of the current parliament in 2029.

Organisations attending the summit include the National Housing Federation, which will work with housing associations to identify at least 2,000 potential homes and bed spaces.

Beauty firm L’Oréal Group will launch a social salon partnership with St Mungo’s and Haircuts4Homeless, while Virgin Media O2 will provide digital support to organisations working with the homeless.

Other attendees at the summit include the Salvation Army, Ikea, the Morrisons Foundation and Comic Relief.

Housing secretary Angela Rayner said: “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, the boss of L’Oreal Group UK and Ireland, said: “Beauty plays an essential role in restoring dignity and a positive sense of self.

“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 homelessness charity Shelter, said: “Matching the money with new commitments from businesses, local leaders and charities demonstrates that we can choose to end rough sleeping as a society.

“Helping people off the streets is the first step, the next is ensuring everyone has a long-term settled home with the right wraparound support, for which this extra injection of cash is vital.

“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 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”.

But he has faced criticism from the Conservatives over his record as mayor of Greater Manchester on the issue.

Shadow housing secretary Katie Lam said: “Burnham is throwing another £432m 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.

“Instead of piling more costs onto hard-working people, Healey must focus on easing the cost of living and delivering real value for taxpayers’ money.”

The £432m will be confirmed in the chancellor’s statement on Wednesday, on top of the £442m already committed.