Deputy First Minister launches rollout of £50 million to prevent homelessness

First 100 days commitments continue to be met

Halfway through the first 100 days of the Scottish Government formed in May, the rollout of an expanded 10-year £50 million Homelessness Prevention Fund is underway.

£1 million 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 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 £9 million 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 £50 million on homelessness prevention activity over the next decade.

Deputy First Minister Jenny Gilruth will visit Sanctuary Housing Association’s offices and development in Toryglen, Glasgow.

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 said: “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.” 

New fund to prevent homelessness

Cash-first approach to keeping tenants in their homes

A partnership programme to help prevent people from becoming homeless has been launched by the Social Justice Secretary Shirley-Anne Somerville. This is in addition to the £4 million investment in homelessness prevention pilots in 2025-26 highlighted by the First Minister in the Programme for Government.

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.

Partnerships funded by the programme will receive a cash fund for individual payments of up to £1,300 to help prevent people 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 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 said: “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 said: “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.”