The £1 million Upstream Homelessness Prevention Fund will bring together Registered Social Landlords (RSLs), third sector organisations, community groups and other local partners to expand on existing successful approaches to preventing homelessness and explore innovative ways to sustain tenancies.

This is in addition to the £4m investment in homelessness prevention pilots in 2025-26 highlighted by the First Minister in the Programme for Government.

Partnerships funded by the programme will receive a cash fund for individual payments of up to £1,300 to help prevent people from becoming homeless. The year-long programme will also help to inform how RSLs will carry out the new Ask and Act prevention duties outlined in the Housing Bill currently progressing through Parliament.

The Scottish Federation of Housing Associations (SFHA) and Homeless Network Scotland will administer the Scottish Government-funded scheme which is open for applications.

Ms Somerville said: “The aim of the fund is to break the cycle of repeat homelessness by providing targeted joined-up support for people struggling to pay their rent while also having to navigate housing, health and social care services.

“This early intervention approach will help to minimise evictions by upstream prevention activity and identifying opportunities to build up support systems where they are needed. This will help people to keep their tenancies and prevent them from becoming homeless.

“The scheme will also provide valuable feedback for the wider RSL network and provide examples of service design and delivery that can be replicated in other places and contexts.”

Scottish Federation of Housing Associations chief executive, Sally Thomas, added: “We are delighted to administer this important funding, which will complement the significant efforts housing associations make to help people remain in their homes.  This could include providing direct cash interventions to those facing financial difficulties, or forming local partnerships to make use of shared spaces and staff to create joined-up approaches to homelessness prevention.

“Beyond the funding, this programme will also provide vital insights on the support needed to help people at risk of homelessness and inform future approaches to partnership working to deliver the Ask and Act duty.”

Homeless Network Scotland, chief executive Maggie Brunjes, commented: “Housing associations and third sector organisations are ideally positioned to prevent homelessness by delivering early, community-focused interventions. This Scottish Government funding will support local partnerships, enabling tailored solutions that tackle material hardship and leverage community resources to help people remain in their homes.”