The final Scottish Budget before the Holyrood election is a step in the right direction on housing and homelessness. But amid a continuing emergency that is causing real harm to people across Scotland, the next Scottish Government must go further to reverse chronic underfunding that is leaving thousands of people without a home.
The Budget confirms £4.1billion in public funding to deliver 36,000 affordable homes over the next four years, including 25,200 for social rent. This includes a welcome 21% increase on the original budget for 2026-27 – but falls short when independent research shows we need at least 15,693 affordable homes delivered every year to address homelessness.
A multi-year approach with funding rising year-on-year provides more certainty to attract investment and deliver on commitments. But this platform can do more than offer stability, important though that is – it can serve as a launchpad to significantly ramp up delivery towards that target.
Today, more than 17,240 households are trapped in temporary accommodation, including 10,180 children, who are waiting on average 238 days for a settled home. Without aiming higher, the human cost of this situation will rise alongside the eye-watering financial cost.
Prevention is key, alongside bricks and mortar. The Scottish Spending Review sets out a focus on preventative approaches across budgets and reform to join-up services. These commitments echo what the Everyone Home collective and All in for Change are calling for in their Housing Justice manifesto.
Targeted funding for Ask and Act
We urge the Scottish Government to prioritise implementation of a coherent and effective homelessness prevention system – including targeted resourcing now to lay the essential groundwork for the new Ask and Act homelessness prevention duties, so they work as intended when enacted in future years
The same goes for reforming public services. Those hit hardest by the housing emergency often face overlapping crises, yet services are built to tackle just one issue at a time. Fixing that will prevent the worst harm to those worst off and save money for the public purse.
These are laudable policies that promise meaningful change. They must not be allowed to fall by the wayside with a change of administration – and the same goes for spending commitments on homelessness services and support, including Housing First.
On 7 May, we will cast our votes for the next Scottish Government. Whoever takes the reins needs to know that taking decisive action commensurate with the scale of the task to make sure everyone has a home may not be easy, but it is achievable and it is worth it – for people, communities and wider society.
As the Finance Secretary said when delivering her Budget: “The choices we are able to take, in this, our national parliament, make a real difference for the people we serve.”
Our questions of the Finance Secretary and Cabinet Secretary for Housing are:
- What specific additional actions and updates will be allocated in the Tackling Child Poverty Delivery Plan and Housing to 2040 action plan to ensure the affordable housing commitment translates into enough social rented homes to prevent and end homelessness?
- How will the Ending Homelessness Together Fund be monitored to ensure it delivers systemic change, including targeted resourcing to lay the essential groundwork for the ‘Ask and Act’ duties with non-housing services?
- How will the Scottish Government work with local authorities and providers to reduce the use of unsuitable temporary accommodation, including setting clear expectations and timelines?
Homelessness and housing in the Budget at a glance:
- £4.9billion investment in affordable homes over the next four years, including £4.1bn public sector funding, to support delivery of 36,000 affordable homes and wider all-tenure ambition.
For 2026-27:
- Continued funding of Discretionary Housing Payments to mitigate the UK bedroom tax, benefit cap and welfare shortfalls including the freeze in Local Housing Allowance rates.
- £1.3million towards Scottish Empty Homes Partnership to expand the core service and fund new small‑scale projects.
- £11.5million for the multi‑year ending homelessness together fund, for measures including Rapid Rehousing transition and the Fund to Leave, which supports women and children affected by domestic abuse.
- £49million for Housing Support, Fuel Poverty and Housing Quality.
- Anti-poverty measures including a boost in weekly Scottish child payment to £40 for households with a baby under the age of one.
Find the full Budget and spending plans here: https://www.gov.scot/budget
