New £3.5 million fund to test out ways to prevent homelessness and turn around London crisis

A new programme to test “new and innovative” approaches to prevent homelessness in London has been revealed.

Mayor of London Sadiq Khan and London Councils have jointly announced a new ending homelessness accelerator programme, backed by £3.5 million from central government, will go towards trialling fresh approaches to preventing homelessness.

Khan has pledged to reduce the number of households living in temporary accommodation – one in 50 Londoners now live in temporary homes provided by councils – as well as setting out a plan of action to end rough sleeping for good across London by 2030.

Like the central Labour government, Khan and co have identified the need for greater efforts to prevent people from becoming homeless in the first place to turn around record-high numbers.

The new programme will enable new methods of preventing homelessness, join up public services to do it and support a team to drive forward key reforms. 

“I have been clear that every Londoner deserves a safe and secure home. The capital is acutely feeling the long-term consequences of a national housing crisis and local authorities have had their budgets slashed, forcing them away from preventing homelessness and into crisis management mode,” said Khan.

“Our new programme will ensure those at risk of or already experiencing homelessness get the support they need as early as possible. By working in partnership with London Councils, government and experts we can make resources available to prevent homelessness early and ensure improvements are made to the quality of temporary accommodation.  

“I am committed to ending rough sleeping by 2030 and providing support to get people off the streets – ultimately preventing them from becoming homeless in the first place. Ensuring people can access the help they need, when they need it, is at the centre of our plan, as we work together to build a safer, fairer London for everyone.” 

The capital city is the epicentre of the national homelessness crisis. 

A total of 13,231 people were seen sleeping rough on London’s streets in 2024-25 – a record high and 10% higher than the previous year. And the surge in households in temporary accommodation sees London boroughs spending £5.5 million on homelessness services every day.

But, historically, funding has largely been swallowed up by crisis support rather than ensuring people who are at risk of homelessness get the support they need to avoid it.

City Hall and London boroughs now collectively spend over £1 billion annually on preventing and resolving all forms of homelessness. 

The new programme will drive forward city-wide plans of action to improve prevention, temporary accommodation, supported housing and rough sleeping respectively, which will be finalised in spring 2026.   

Khan published the rough sleeping plan of action in May this year, to set out a pathway to ending rough sleeping for good by 2030.

But boosting the availability of affordable housing will also be key. Recently, the government and Khan announced a deal to reduce the quota of affordable homes in new developments from 35% to 20% in a bid to speed up housebuilding in the English capital.

Cllr Grace Williams, London Councils’ executive member for housing and regeneration, said: “The Ending Homelessness Accelerator Programme is an important step forward in our pan-London partnership. In the face of enormous challenges and constraints, we are pleased to be working alongside the mayor, the government, and other crucial partners, on improving coordination and driving innovation to help end all forms of homelessness more quickly.”

Read more:

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Jo Carter, CEO of Glass Door Homeless Charity, told Big Issue that Khan will only be able to achieve his goal of ending rough sleeping by 2030 with a greater push towards prevention.

Glass Door operates the largest network of night shelters in the country and has provided shelter to 224 people since the winter began. The demand has led to a growing waiting list and meant the charity has had to close new registrations for men.

Carter said that both Khan and the government’s upcoming homelessness strategy must make prevention a priority.

“Ending rough sleeping in London by 2030 is an important ambition but it will only be achieved if prevention becomes the driving force behind every part of the system,” said Carter. “We have heard ambitious targets before, yet they were missed because the focus stayed on emergency response rather than early intervention. 

“The accelerator programme is a positive step, but London cannot shoulder this alone. Ending rough sleeping here depends on a national commitment to reduce homelessness in all its forms, backed by real investment in prevention. The government’s national homelessness strategy is expected soon, and we need it to deliver tangible action, not just ambitious words on paper. The lack of meaningful focus on homelessness in the recent autumn budget was deeply disappointing and does not match the urgency of this crisis. 

“Ending rough sleeping in London within the next four years is achievable. But it requires urgent national action, bold preventative measures, and genuine partnership between government, the mayor, councils and charities like Glass Door Homeless Charity. Without this, another set of targets will come and go, and people will continue to fall through the gaps.”

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