The government has announced £23 million of funding to help the homeless.
A total of 1600 of the most vulnerable homeless young people in the country will be helped to get their lives back on track with the £15 million Fair Chance Fund, while the £8 million Help for Single Homeless Fund will support around 22,000 single homeless people.
The new Fair Chance Fund, announced at the Youth Homelessness Parliament, will pay for sustained housing, employment and educational support for homeless 18 to 24 year olds with investors putting in money now on a long-term payment by results basis.
Young people with the greatest needs, which other services may already have failed, will be helped by charities to find accommodation, gain qualifications and move into work using investment from innovative new social impact bonds.
Homelessness Minster Kris Hopkins said: "This government is determined to get effective support to the most vulnerable in society, especially young people who may have fallen into homelessness due to any number of problems. A joined up approach that works for them cannot only be about providing accommodation. To properly turn around their lives we also need to deal with all of their problems and find ways to get them the skills they need to get back into work and look after themselves for the long term"
It is expected that the scheme will create significant long-term savings for taxpayers because of its impact in reducing crime, poor health and long term benefit dependency amongst the target group. Local authorities will be responsible for referrals to the Fair Chance Fund schemes, ensuring that young people with the greatest need are prioritised.
Each of the bids is funded through a social impact bond, where the cost of services is paid for by social investors, who stand to lose their money if positive outcomes are not achieved. The UK is the world leader in this type of investment, which aims to improve delivery of innovative solutions to complex social problems and transfer risk from both the tax payer and the voluntary sector organisations who will be working with the young people.
The Single Homeless Fund is about better help for individuals with complex needs. It’s not just about housing – it’s about a more integrated approach with better collaboration between agencies.
A total of £8 million has been made available to support around 22,000 people of whom 6,000 will be newly homeless. Over 12,000 of them will be people with 1 or more support needs and around 3,500 will be people with multiple support needs and a history of rough sleeping.
