Many of the changes we argue for in this pamphlet are cost neutral – they are better ways of focusing existing resources. Other recommendations will require an 'up front' investment, but the savings will be considerable in the longer term.
At the moment we spend far too much dealing with the effects of homelessness. It would be much cheaper to prevent it. According to the National Audit Office, around one billion pounds is spent each year on 'preventing and tackling homelessness'. Most is spent on the high costs of temporary accommodation.
This figure does not take into account the more hidden costs that homelessness adds to other areas of public spending:
Health
Homeless people with poor levels of mental and physical health often rely on costly acute services.
Crime
Homeless people trapped by addictions or offending behaviour needing help to change.
Benefits
People in expensive temporary accommodation want to work but can lose 89p of benefits for every pound earned – a real barrier to independence. Some recommendations need greater investment in support and housing. Refocusing expenditure now into preventing or resolving homelessness will result in longer-term savings across government budgets.
Agree a cost benefit framework as the foundation for the 'invest to save' case for ending homelessness.