At The Connection, we believe homelessness is a moral crisis for our society that should be addressed out of kindness and compassion for others.

Every individual deserves a safe and stable place to call home. Homelessness exposes people to unimaginable hardships, vulnerability, and often leads to a cycle of poverty. As a society, we have a collective responsibility to uplift those in need and ensure that no one is left behind.

But, while it might sound cynical, the economic benefits of ending homelessness are also very strong.

How much would it cost to end homelessness in the UK?

This is an obvious question. After all, if ending homelessness was simple and cheap, you could assume it would have been accomplished long ago.

The cost of addressing homelessness in London might seem daunting but the long-term benefits and potential savings make it a strong financial investment.

While we can’t know for sure, many studies have estimated the cost of ending homelessness in the UK. For instance, Crisis estimates that £1.9 billion would be needed to completely eradicate homelessness in the UK. This cost includes various aspects such as providing affordable housing, support services, and mental health assistance.

Of course, everyone’s journey out of homelessness is unique and would require a unique solution. So, it’s likely these estimates are incomplete and they could underestimate the extent of rough sleeping in the UK.

There’s no denying this is an enormous figure. But, for comparison, the pandemic cost the UK government £480 billion in 2020/1 alone. Clearly then, £1.9 billion, spent over decades, seems like a good investment for the social and financial good it could lead too.

How much does homelessness cost?

For government the financial cost of homelessness in the UK is estimated to be £1 billion per year, or £30,000 per person.

But there are many other costs to consider.

For example, an indirect cost of homelessness is the strain it can cause on the NHS. People experiencing homelessness often face multiple health challenges due to exposure to harsh living conditions, lack of access to suitable healthcare, and increased risk of mental health issues and substance abuse. These healthcare costs add up quickly.

The NHS spends an estimated £4,298 per person annually on healthcare for people facing homelessness. This is 4x the average cost for someone in the general population. By investing in successful solutions like stable housing, we can significantly reduce these healthcare costs while improving the overall wellbeing of the homeless population.

People sleeping rough are also more likely to fall into criminal activity for a variety of reasons, usually as a form of self-preservation.

However, if people were living in stability at home, we could expect to see the level of crime decrease. Due to this, the need for police interventions and incarceration would go down, leading to significant cost savings.

Additionally, there are some costs which can be much more difficult to measure. For example, someone might fall behind on their rent payments, become evicted and start sleeping rough. While on the streets, they may struggle to maintain a professionally presentable appearance. If this results in them losing their job, the person is no longer able to contribute to the economy. This could also lead to less tax revenue and more demand for welfare support.

The human cost of homelessness

Finally, there are many costs of homelessness that cannot be measured.

How can we put a price on time spent with a family member, a cosy bed or a hot meal after a long day?

The emotional, mental and physical cost of homelessness can be overall on an individual level.

Take Aurel for example.

Aurel lost his job and his sense of self-worth because of homelessness. This was devastating and he found it hard to carry on. Luckily, The Connection were there to support him.

According to Aurel: “the future looks bright and I am beginning to relax in my new reality with so much to look forward to.”

But others aren’t so lucky. That’s why it’s morally imperative that we end homelessness. This could prevent untold harm to our communities and the people in them.

So what can we do?

Overall, ending homelessness is a win-win situation. It reduces costs for society, improves the lives of individuals, and strengthens communities.

We believe our Theory of Change should be at the heart of all work with people experiencing homelessness.

Our Theory of Change means we reach out to people, build a relationship with them, support them in planning for the future and make sure they stay on track with their goals. This is always led by the person experiencing homelessness, not us, and focuses on their priorities first. Their goals could extend beyond housing into health, family life and anything else they need to help them feel ready and supported to move away from the streets.

We believe that replicating this approach across all homelessness services, as well as large-scale investment in appropriate accommodation and support alongside it, would be a worthwhile investment both financially and for creating a society where everyone has a safe and stable place to live.

Article last updated: July 2024