Budget Pressures Facing the UK Housing and Homeless Hostel Sector in 2025-26
Introduction
As we enter the new financial year for 2025/6, organisations across the UK that provide housing and homelessness support are grappling with unprecedented budget pressures. A perfect storm of funding cuts, inflation, and surging demand for services is straining housing associations, charities, and homeless hostels. Many are warning that without relief, vital services could be scaled back or even shut down.
In response, service providers are exploring innovative ways to reduce costs while maintaining both their safeguarding obligations and adhering to service delivery. Implementing solutions such as outsourcing both day and night provision, funding the use of security guards and concierge through different funding streams. Roaming concierge, remote CCTV monitoring, and ASB emergency response services provide flexible, scalable safeguarding options that fit within restrictive budgets without compromising safety standards.
Funding Cuts and Tightening Budgets
Public funding for homelessness and supported housing services has been under intense strain, making it increasingly difficult for organisations to maintain essential services. Several local authorities have recently proposed deep cuts to homelessness programmes to plug their own budget gaps. For example, Devon, Hampshire, and Leicestershire County councils announced plans in late 2023 to implement severe financial cuts due to ongoing economic constraints.
Unfortunately, these cuts come at a time when rough sleeping and homelessness rates are rising, leading to concerns about the long-term sustainability of essential services. With traditional funding sources shrinking, housing providers are being forced to make tough decisions to maintain security, service levels, and staff well-being despite tighter budgets.
Inflation: The Cost-of-Living Squeeze
The UK Governments ongoing battle with inflation has compounded the budget crisis for housing and homelessness providers. The UK experienced a 40-year high in inflation, peaking at 11.1% in October 2022. For charities and hostels, this resulted in significantly higher costs for essentials like energy, food, and staff wages – without equivalent increases in funding.
Service providers are now being forced to find innovative ways to cut operational expenses while still protecting residents and staff. Cost-saving security solutions, such as integrated surveillance, specialist security guards and mobile patrols, have helped housing associations and hostel operators reduce staffing costs while maintaining a strong security presence.
Increasing Demand for Homelessness Services
At the same time, demand for homelessness and housing support is reaching unprecedented levels. The economic fallout of the pandemic and the cost-of-living crisis have pushed more people to the brink, leading to rising homelessness across the UK. Official statistics show that in the latest year (2023-24), over 324,000 households in England approached their council for homelessness assistance – an 8% increase from the previous year. Since the Supporting People Programme Grant ringfence was removed, the funding model of the homeless sector has considerable changed. There has been a steady rise in Housing Benefit as the main source of funding, taking over as the most dominant funding source in the sector in 2017. Since the end of the Supporting People ringfence in 2008 there has been a 1700% increase in Housing Benefit as a funding source for homelessness accommodation and a 71% decrease in local authority commissioned services.
Smart Budget Saving Safeguarding & Security Solutions
With caseloads increasing and budgets under strain, below are some of the innovative safeguarding and security solutions that 360 Services are providing to our clients in the supported and temporary accommodation sector.
- Roaming Safeguarding & Security Staff: Instead of paying for dedicated overnight cover, our teams are experienced at supporting several sites over a wide geographical area. Providing flexible coverage across multiple locations. This approach ensures cost savings while maintaining effective safeguarding of residents who present a lower safeguarding risk.
- Outsourcing Support for Probation & Ex Offenders Accommodation: We have several clients who utilise our Safeguarding Officers, to provide specialist support around the reintegration of ex-offenders into the community. These residents tend to have relatively low overnight support needs. Outsourcing night cover to 360 Service represents a financial benefit for our clients, whilst ensuring residents whereabouts can be monitored, any additional support needs both identified and provided, and our clients can confirm that any probation conditions placed on their residents are being complied with.
- Remote CCTV Monitoring: Advances in technology are enabling housing providers to remotely monitor semi-independent sites via CCTV cameras, reducing the need for on-site personnel. Surveillance feeds are watched by officers who specialise and are experienced at safeguarding the needs of vulnerable people. This ensures continuous monitoring for both Anti-Social Behaviour and safeguarding concerns. With rapid responses from specialist in safeguarding vulnerable people, where a concern is noticed. This allows for trained staff to be on site only when needed and reduces the high costs associated with 24/7 on-site personnel.
- Emergency Response Services: Emergency response services assist sites when issues arise. These services operate on a per-call basis, ensuring cost-effectiveness while maintaining rapid incident resolution. Response personnel handle a wide range of issues, including security breaches, anti-social behaviour, and urgent health and safety site inspections, allowing housing providers to address safeguarding concerns efficiently while optimising budgetary resources. This service is increasingly being used by our clients to resolve ASB and noise complaints raised by neighbours.
Through strategic partnerships, or innovative safeguarding and security measures have helped organisations maintain the security and efficiency of their sites whilst working within budget constraints.
A Balanced Approach to Safety and Sustainability
Ultimately, the UK’s housing and homelessness sector in 2025-26 is walking a tightrope: trying to balance increasing, longer-term demand with shrinking financial resources. Funding cuts and high inflation have created a budget crunch at the worst possible time, just as the homelessness crisis worsens.
By adopting efficient security safeguarding strategies, organisations can ensure reliable safety while maintaining financial sustainability. 360 Services will continue to work alongside housing providers to deliver bespoke solutions that meet their unique needs. A strategic approach helps housing associations and hostels maintain security and stability in uncertain financial times.
For organisations seeking dependable and cost-effective security solutions, exploring roaming security, remote CCTV, and emergency response services can offer vital support in these challenging times.
360 Services supplies security guards and night concierge Dartford, Berkshire oxford, Kent, Greater Manchester, reading, Coventry and throughout most of England. We are a provider of office security in Dartford and Kent
References
- Inside Housing – “County councils move to scrap ‘vital’ homelessness funding” (24 Nov 2023).
- Inside Housing – “Leicestershire hostel closure due to funding cut” (2023).
- House of Commons Library – Rising cost of living in the UK (July 2024).
- Crisis – Statutory homelessness in England 2023-24 (Press release, Aug 2024).
- Westminster Council – Housing Committee report (Mar 2023), roaming security pilot details.
- LocalGov – Your Source for the Latest News From The Sector
- WCCTV (Wireless CCTV Ltd) – Benefits of Remote CCTV Monitoring.
- Securitas case study – WATMOS Housing Association CCTV analytics trial (2023).
- www.360-services.co.uk A Safeguarding & Security Company based in Dartford.
