A new £1 million initiative has been launched to help people stay in their homes and stop homelessness before it begins.
Led by Social Justice Secretary Shirley-Anne Somerville, the Upstream Homelessness Prevention Fund aims to support those who are struggling to make ends meet, using a cash-first approach to help them hold onto their tenancies.
This new fund is in addition to the £4 million already pledged for homelessness prevention pilots in 2025, forming part of the Scottish Government’s wider commitment to stop homelessness at the root.
At its heart is a simple idea with powerful potential offer targeted support early, before a crisis escalates.
The year-long programme will offer direct payments of up to £1,300 per person, giving housing associations and their partners the tools to provide immediate, practical help to people at risk of losing their homes.
But this is not just about handing out money.
The fund also supports partnership working between Registered Social Landlords, third sector organisations, community groups and local agencies to try new ways of sustaining tenancies and building stronger safety nets for people in need.
Ms Somerville called the fund a vital step in “breaking the cycle of repeat homelessness,” with a focus on helping people navigate complex housing, health and social care systems.
She said the initiative will build on proven early intervention models to reduce evictions and keep people secure in their homes.
The programme will also play a key role in shaping how housing providers respond to new prevention duties under Scotland’s forthcoming Housing Bill.
Administered by the Scottish Federation of Housing Associations and Homeless Network Scotland, the fund is now open for applications from partnerships keen to explore fresh approaches to homelessness prevention.
Sally Thomas, Chief Executive of the SFHA, said she was “delighted” to support the scheme, which will both reinforce the work housing associations are already doing and create new ways of working across communities.
That could include everything from emergency cash grants to shared spaces and integrated staffing models that offer wraparound support.
Maggie Brunjes, Chief Executive of Homeless Network Scotland, praised the move as a smart, compassionate investment in community-led solutions.
She said housing associations and frontline charities are ideally placed to prevent homelessness by offering early, locally rooted support.
This new funding, she added, gives them the power to meet people where they are, tackle material hardship head-on and keep people in homes where they belong.
The scheme marks a shift in how Scotland thinks about homelessness not as a tragic end point, but as something we can and must prevent, together.
