Funding dispute raises major concerns over future of homelessness services in Exeter

Exeter’s homelessness support services are facing continued uncertainty as Devon County Council prepares to reduce its homelessness prevention funding over the next three years, prompting concern from local providers and elected representatives.

During a Westminster Hall debate on 2 December, Exeter MP Steve Race said transitional accommodation and support services in the city could come under pressure as a result of the planned reductions.

He noted that the Government had recently allocated an additional £500,000 to Exeter City Council’s homelessness budget, bringing the total to £1.8 million. 

But said that Devon County Council’s phased reduction (from £1.45 million in 2024/25 to £1 million in 2025/26 and £500,000 in both 2026/27 and 2027/28) risked destabilising existing provision unless long-term arrangements were clarified.

Devon County Council’s homelessness prevention funding currently supports a range of frontline work across the county, including supported accommodation units, outreach teams, and early-intervention services aimed at preventing people from becoming homeless.

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Currently, Exeter has one of the highest levels of homelessness in the South West, with dozens of people rough sleeping each month and many more living in temporary or insecure accommodation.

Mr Race told MPs that some organisations had reported limited communication about future funding arrangements, and said he had written to DCC leader, Cllr Julian Brazil, seeking confirmation of how homelessness support and social care responsibilities would be met if services were forced to scale back or close.

A Devon County Council spokesperson said the authority had “for a long time” provided funding to assist with homelessness prevention and had been working with district and city councils to devolve commissioning responsibilities to them. 

They said this approach allowed funding to be directed “to where it will have greatest impact,” alongside locally provided resources.

The spokesperson said the reduction in funding followed a 2023 public consultation but that Devon County Council would “continue to be a partner in this area of need” and would work with districts to “combine resources to support people who are homeless and in need of support in Devon.”

The council confirmed its planned contribution levels for homelessness prevention for adults aged 18 and over: • 2024/25 – £1.45 million • 2025/26 – £1 million • 2026/27 – £500,000 • 2027/28 – £500,000

Cllr Brazil, who attended a homelessness prevention meeting with district councils including Exeter, said the latest discussions had been positive, with a clear ambition for councils across Devon to work together.

He said: “We had a very positive meeting. There is a clear ambition for all councils to work together. There is already cross-council cooperation around council tax discounts for our most vulnerable.”

“I am keen to see a pooled resource across Devon that will be focussed on preventing homelessness, especially amongst care-leavers. We are all setting budgets so now is a good time to achieve this goal.” 

“We also hope that the government, maybe through Homes England, will work with us to support this approach.”

Cllr Brazil also pointed to wider financial pressures on Devon, including the removal of national funding for rurality and remoteness, which previously brought millions of pounds into the county. 

While some of this is being redistributed through a recovery grant, he noted that Devon County Council is not receiving any allocation, while Exeter City Council is due to receive additional funding. 

He suggested the city council may wish to set out how much of that extra funding it plans to invest in homelessness prevention.

Local organisations including St Petrock’s, YMCA, CoLab, Gabriel House and Julian House continue to deliver frontline support but say clarity on future commissioning is essential as they plan for the next financial year.

Further details on funding and commissioning arrangements are expected over the coming weeks.