£50m Homelessness Prevention Fund rollout begins
Deputy first minister Jenny Gilruth
Deputy first minister Jenny Gilruth has today announced the rollout of an expanded 10-year £50 million Homelessness Prevention Fund.
A total of £1m is being made available for a second year to enable social landlords and third sector organisations to support tenants to stay in their homes.
The Scottish Federation of Housing Associations (SFHA) and Homeless Network Scotland are administering phase two of the Upstream Homelessness Prevention Fund. This will provide a range of support to households in Glasgow, including assistance with rent arrears, repairs and furniture costs alongside initiatives to prevent people becoming homeless.
The fund is in addition to the £9m invested to mitigate the impact of the UK Government’s decision to freeze Local Housing Allowance (LHA) rates in 2026-27. It forms part of the commitment to spend £50m on homelessness prevention activity over the next decade.
Ahead of a visit to Sanctuary Scotland’s offices and development in Toryglen, Ms Gilruth said: “Preventing homelessness is not just the right thing to do – it is the most effective way to end it for good. For too long, the system has been geared towards responding to crisis rather than stopping it happen.
“So in our first 100 days in government, we are rolling out funding which will help to change that.
“This fund will help build up capacity of communities and public services to act earlier, supporting people before situations become critical and embedding prevention across organisations that interact with those at risk.
“Homelessness is devastating, but we know that most of it is preventable. That is why sustained, long-term investment in prevention is central to everything we are doing.”
Director of external affairs at the Scottish Federation of Housing Associations, Paul Bradley, said: “The Upstream Homelessness Prevention Fund has had a transformative impact in preventing homelessness for hundreds of people across Scotland, so we wholly welcome its extension.
“This funding is further proof that prevention works, and that housing associations, working alongside government and partners, can reach tenants long before a crisis.
“The greatest way to tackle homelessness is to prevent it in the first place. Prevention funding running alongside a strong supply of safe, warm, and affordable homes gives Scotland the best chance of a true step-change so no one has to face losing their home.”
Homeless Network Scotland chief executive Maggie Brunjes added: “Preventing homelessness starts where people live. This second round of the Upstream Prevention Fund is a vital investment in Glasgow. Housing associations are ideally placed to prevent homelessness through their strong community roots and close partnerships with local charities.
“Homelessness charities play a key strategic role too, bringing deep knowledge of the issues people face and how to tackle them early. Working with SFHA and local partners, we will build on the success of the first round to help more households stay in their homes and make prevention and joined-up support a real priority across the city.”
Ashley Campbell, CIH Scotland policy and practice manager, said: “We welcome the Scottish Government’s continued commitment to preventing homelessness. This will lead to better outcomes for households at risk of homelessness but also provides better value for money.
“Effective prevention work requires long-term funding to support the commissioning of services, attract and retain skilled staff, and build strong partnerships. We also need the Scottish government to ramp up delivery of social and affordable homes, and to invest in bringing existing homes up to standard. Every person in Scotland should expect to live in a warm, safe home that meets their needs.”
Maeve McGoldrick, head of policy and communications at Crisis Scotland, added: “The commitment to invest £50m in preventing homelessness is a welcome first step and reflects the growing recognition that prevention must be at the heart of Scotland’s response to tackling homelessness. To maximise the impact of this investment, it will be important that funding is frontloaded in the early years to underpin the initial implementation, systems change and capacity building required to deliver the new prevention duties effectively.
“It is vital that strategic decisions are made now to ensure this funding supports a robust nationwide implementation plan between now and the commencement of new ‘Ask and Act’ duties at the end of 2028. This should provide the foundations for a sustainable approach to prevention that supports all forms of homelessness and reaches communities across every part of Scotland.
“The Scottish Government has set out its ambition to end homelessness, and that momentum must continue. The forthcoming Programme for Government provides an opportunity to set out a clear plan for implementation, aligning with its public service reform agenda to better integrate services and act early to stabilise housing provision. This will help deliver the long-term change needed to end homelessness in Scotland by 2040.”


