Wednesday 26th November 2025
The Passage welcomes the Government’s acknowledgement that reform and efficiency are needed across public services. However, the Autumn Budget falls short on recognising the cost of not intervening early enough to prevent homelessness – a cost borne not only by people experiencing homelessness, but by the wider public purse.
We support the Budget’s direction toward test-and-learn approaches and reinvestment in efficiency savings. These principles are central to our No Night Out (NNO) model, which circumvents the existing system by providing immediate support before people reach crisis. By preventing individuals from rough sleeping entirely, we make public systems more productive for those who use them – and more sustainable for the communities that rely on them.
Current homelessness responses too often activate only after a person has reached a point of acute vulnerability. This is morally unacceptable and economically inefficient. A decade-old estimate from Crisis suggested that one person sleeping rough for 12 months cost the public purse £20,128. Adjusted for inflation, this is now roughly £27,965 per person in 2025*. If rising housing costs and poverty continue unaddressed, these costs will increase further.
In contrast to this, our No Night Out model clearly demonstrates that change is possible. Since launching In 2021, of the 420 people supported into long-term accommodation, just 3 are currently street homeless. Behind each of these numbers is a unique and important story, of how we have helped someone to transform their life for the better.
Health outcomes show the human and economic cost
The 2025 Homeless Health Needs Audit highlights the stark health inequalities faced by people experiencing homelessness. Compared to the general population, people who experience homeless have:
- a higher prevalence of chronic physical health conditions,
- significantly elevated rates of mental ill-health and substance dependency,
- and increased use of emergency services over preventative care.
Of the 3,546 people assessed whilst rough sleeping on the streets of London during Q2 this year, 54.5% had mental health support needs.
This reinforces the case for models like No Night Out, which prevent rough sleeping at the earliest point and reduce pressure on hospitals, mental health services, temporary accommodation systems and police services.
A society that doesn’t punish people for circumstances outside their control
Every day, our frontline teams meet people whose lives have been shaped by structural barriers – rising rents, insecure work, family breakdown, health crises, or migration shocks.
As Rachel Reeves said: “No child should be punished for the circumstances of their birth” – and no adult should be punished for circumstances beyond their control. Homelessness is not a choice. It is the outcome of systems that fail to protect people early enough.
Investment in prevention is not charity – it is public service reform. It strengthens families before they fall into poverty, stops people from ever experiencing street homelessness, and ensures resources are available for those who have already crossed that threshold.
We can lead the way – together
The Passage is already leading the way on prevention. The NNO model shows that early intervention is possible, humane and cost-effective. But to realise its full potential, the Government must address rising housing costs, reinvest in prevention, and avoid policies that simply shift pressure downstream.
As a society, we all have a role in ensuring no one has to spend a single night on the streets. Because when we fail to intervene, the cost – human and financial – is far greater.
We all have a role to play
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*Calculated by adjusting the 2015 Crisis estimate of £20,128 per person per year for inflation at 3.13% per year to 2025, resulting in approximately £27,965 per person.