Tackling homelessness early could save £1000s for every person helped

Tackling homelessness early could save the taxpayer between £3,000 and £18,000 for every person helped, according to new research from homelessness charity Crisis.

The Financial Costs of Single Homelessness in the UK makes the economic case for helping homeless people at an early stage. It warns that unless people get the help they need, their lives can quickly spiral out of control, leaving them vulnerable to mental and physical health problems, violent crime and problems with drugs and alcohol. As a consequence, they can become much harder to help and are more likely to need costly public services such as A&E, hospital treatment and psychiatric support.

Conversely, tackling homelessness early enables people to succeed in their lives and to contribute to society and the economy.

Drawing on recent large studies of homeless adults across Britain, the report uses various common scenarios to estimate costs ­to public services incurred as a result of being homeless for 12 months. It then looks at costs for the same person if their homelessness is resolved quickly or prevented and compares the results. In all scenarios, the longer someone is homeless, the greater the financial cost.

The findings lend further support to Crisis’ No One Turned Away campaign, which calls on the Government to review the help single homeless people get under the law.

Jon Sparkes, Chief Executive of Crisis said: “Homelessness has a terrible human cost, but it’s also incredibly expensive for the public purse. Helping people to stay off the streets and rebuild their lives is about basic social justice – it’s the right thing to do – and this study shows that it makes good economic sense too. Our calculations suggest that it could save the taxpayer as much as £18,000 per year for every person helped. The logic is clear: preventing homelessness saves lives, but also reduces public costs.

“It’s essential that homeless people get help at an early stage. Yet we know from previous research that single homeless people who ask their councils for help are often turned away with no choice but to sleep on the streets. This can be catastrophic for the individual, but it’s also a false economy for public services. We urgently need a review of the law as it applies to single homeless people so that everyone can get the help they need.”

Report author, Nicholas Pleace of University of York said: “We are only beginning to understand the real financial costs of homelessness. There is growing international evidence that stopping homelessness is more cost effective than allowing it to persist. We have been able to estimate costs for the UK that strongly suggest the same pattern exists here - that preventing and rapidly stopping homelessness is the option that makes most financial sense.”    

The report looks at four typical homeless scenarios, including: a 19-year-old homeless woman, a man in his 30s who is forced to sleep rough after losing his job, a man with learning difficulties who loses his existing home and a woman in her 20s escaping domestic violence.

It draws on previous research tracking homeless people over time to develop these scenarios, and uses best available information to calculate typical costs.

While there have been concerns both in the UK and abroad about the costs of homelessness, so far there has been limited evidence on costs in the UK. This report is the first in a series aiming to fill this gap.

ENDS

For further media information, interviews or to arrange a visit please contact Tom Phillips on 020 7426 3853 or thomas.phillips@crisis.org.uk.

Notes to editors

Crisis' No One Turned Away campaign calls for a review of the help available to single homeless people under the law in England.