The Fairer Funding Review 2.0

15th August 2025

The Fairer Funding Review 2.0

15th August 2025

St Mungo's response to the Fairer Funding 2.0 consultation

This consultation seeks views on the Government’s proposals to simplify the grant landscape by introducing larger, consolidated funding streams. Specifically for homelessness, the plan is to merge the Homelessness Prevention Grant with the Rough Sleeping Prevention and Recovery Grant into a single, consolidated Homelessness and Rough Sleeping Grant. This new grant will also include smaller funding pots, such as the Rough Sleeping Drug and Alcohol Treatment Grant.

Under the proposals, temporary accommodation—currently funded through the Homelessness Prevention Grant—would instead be moved to the Revenue Support Grant, a separate, non-ring-fenced grant. The new Homelessness and Rough Sleeping Grant will remain ring-fenced, but local authorities will have flexibility in how they use it to deliver homelessness and rough sleeping services.

St Mungo’s welcomes this change and will advise the Government on how to ensure a robust prevention and response system for single adults facing homelessness under the new consolidated approach.