Ending Homelessness in Communities Fund - prospectus

Grant summary

Purpose

The Ministry of Housing, Communities and Local Government (MHCLG) is committed to ensuring everyone has the conditions they need to thrive regardless of their background or the circumstances in their life. At the heart of this ambition is the belief that an affordable, secure and stable home should be available to everyone.  

This government is focused on addressing the root causes of homelessness and ensuring people get the right support at the right time. Achieving this requires the energy, reach, and innovation of the voluntary, community, and faith sector (VCFS). These organisations bring deep local knowledge, trusted relationships, and a unique ability to engage people.

The Ending Homelessness in Communities Fund (EHCF) represents an unprecedented investment of £37 million in the VCFS. This fund puts communities at the heart of our national effort, enabling the sector to strengthen community-based support, transform day services, help individuals live independently and prevent homelessness and rough sleeping.

Type of grant

Competed

Who can apply

VCFS organisations in England with a maximum annual income of £5 million that have been delivering support for at least 3 years to individuals at risk of, or currently experiencing, homelessness and rough sleeping.

For further information, please see the eligibility criteria below.

Funding available

Up to £37 million in revenue and capital funding distributed over three3 years. Applicants may apply for revenue funding, capital funding, or both, but applications for both types of funding must be made within a single application. For further information on the eligible annual grant size, please see the Grants Available section below.

MHCLG reserves the right to not fully allocate the budget through this competition, depending on the quality and balance of bids. MHCLG reserves the right to bring forward a second round of bidding.

Important dates

Applications open: Midday Monday 23 February 2026

Deadline for applications: Midday Monday 31 March 2026

Assessments: April 2026

Moderation: May 2026

Notifying outcomes of grant competition: June 2026

Grant Funding Agreements issued: June 2026

First grant payments issued: July/AugustAugust 2026

Please note that funding for Year 1 will not be released until July or August 2026 pending submission of a Grant Claim Form. Any funding awarded for Years 2 and 3 will be made available from May 2027 and May 2028, respectively.

Apply for funding

ApplicationsYou willcan openapply for thisfunding fundusing atthis midday on 23  February 2026. link.

Contact us

If you have any questions, please refer to our Frequently Asked Questions or contact us at ehcf@communities.gov.uk.

Introduction

The Ending Homelessness in Communities Fund (EHCF) is a new three-year3-year fund running from 2026 to 2029. It forms an important part of delivering the National Plan to End Homelessness, which sets out our ambition for VCFS organisations to work alongside statutory services to prevent and end homelessness. Tackling homelessness must be a shared responsibility, with all relevant public services, including councils and VCFS partners, collaborating to prevent homelessness.

Through targeted investment of £37 million, the EHCF will support VCFS organisations to expand community-based support, strengthen and transform existing day support offers, help individuals to live independently and prevent them from returning to rough sleeping. This includes supporting those who have experienced the longest periods on the streets, who rely on trusted relationships and flexible provision to move forward. By reshaping local responses, building stronger pathways into accommodation, and supporting sustained recovery, the fund will play a key role in meeting the government’s commitment to halving long-term rough sleeping by the end of this Parliament.

This fund broadens the scope of investment in community-based homelessness services that do not receive the majority of their funding through traditional commissioning, targeting day centres and night shelters offering day provision across England. These services provide vital practical help and trusted relationships and are often the first point of contact for people facing complex challenges or who are the hardest to engage.

MHCLG recognises that sustainable change requires system-wide transformation. Councils, public services, and VCFS partners must work together to deliver person-centred, trauma-informed support and create local systems that prevent homelessness and promote long-term recovery. This fund is designed to support that shift, enabling organisations to transform provision, strengthen partnership working, and improve outcomes for people at risk of, or experiencing, homelessness.

We encourage applicants to consider how their proposals complement existing local authority support offers, embed person-centered approaches, and help people move away from homelessness for good.

This prospectus sets out eligibility, priorities, and guidance for organisations seeking funding to enhance or transform their services.

Grant objectives

We are seeking proposals to:

1. Increase community-based support to prevent and reduce the number of people experiencing rough sleeping
2. Enhance or transform existing day support offers through staff, physical infrastructure, service development and partnership working
3. Support individuals to live independently and prevent them returning to rough sleeping

We particularly welcome applications across any objectives that deliver tailored support to locally identified groups facing barriers to engagement, and that complement existing local authority provision.

What we are looking for:

Objective 1: Community-based support – This objective seeks to improve the quality, capacity, or reach of sector organisations to develop long-term solutions to prevent and reduce rough sleeping.

We are particularly interested in initiatives that:

• increase casework support for people at risk of or experiencing homelessness
• strengthen community-led networks and referral pathways to prevent people entering or returning to rough sleeping
• facilitate and improve volunteer-based offers of support
• offer support to prevent people entering crisis
• provide single unit accommodation to fulfil a defined local need
• are from night shelters seeking to transform into single-room accommodation, but have not previously received capital funding from the Night Shelter Transformation Fund (NSTF)

Objective 2: Day services – This objective seeks to improve the quality, capacity, or reach of day services for people experiencing homelessness and rough sleeping.

We welcome projects that:

• improve the physical infrastructure of day centres, drop-ins and places people at risk of or, experiencing or recovering from homelessness use
• support co-location of support services, joint working, and the development of new offers
• invest in staff development, trauma-informed approaches and service innovation
• specific programmes for people experiencing long-term rough sleeping

Objective 3: Recovery – This objective seeks to improve support for a person once they have moved in to settled accommodation, using the local community to develop a support network.

We are looking for proposals that:

• provide long-term support to sustain tenancies, develop skills, or find and sustain employment
• deliver mentoring and befriending style relational support and seek to develop resilience, create social networks and foster a sense of belonging and connection
• peer support programmes and activities for people once supported from rough sleeping and into accommodation

Eligibility criteria

To apply for this grant, your organisation must be a voluntary, community or faith sector (VCFS) organisation, operating in England, and established for charitable, benevolent or philanthropic purposes. Eligible organisations include:

• Charitable companies limited by guarantee registered with Companies House and with The Charity Commission or an Exempt Charity
• Charitable Incorporated Organisations (CIO) registered with The Charity Commission
• Community Interest Companies (CIC) registered with Companies House
• Community Benefit Societies (CBS) or Co-operative societies registered with the Financial Conduct Authority (FCA)
• Parochial Church Councils (PCC)

Those who are not eligible to apply include:

• individuals or sole traders
• profit-distributing organisations
• companies limited by shares, unless a community interest company
• unincorporated groups and organisations
• statutory bodies or public sector organisations (e.g. local authority bodies)
• organisations primarily engaged in political activity
• regulated education sector organisations (e.g. schools, further and higher education institutions, academy trusts, universities)

In addition to above, to apply for this grant your organisation must:

• demonstrate an income of under £5 million in your last financial year
• demonstrate that the grant aligns with the organisation’s core purpose, complements the wider homelessness system in its area, and embeds sustainable improvements in service delivery
• have been providing services directly to people who are at risk of, have a history of, or are currently experiencing rough sleeping for a minimum of three3 years
• operate in England
• have a letter of endorsement from the local authority where services will be delivered as part of the application. This is to ensure alignment with local strategies and to avoid duplication of commissioned services. Letters must be from an officer responsible for homelessness and or rough sleeping; letters from elected members will not be accepted.

As part of our standard processes, we will conduct full due diligence checks on applicants before any funding is confirmed. Selected grantees may be asked to provide recent annual reports and/or submitted accounts, and you will be deemed ineligible if you are unable to verify that you meet the criteria.

Organisations may submit only one application. If an organisation makes multiple applications, then we will assess the first one that is submitted. Please note that once an application has been submitted, it cannot be withdrawn and will be regarded as your only submission.

Partnership applications

We welcome applicants from organisations applying as part of a partnership. When applying as part of a partnership, you should demonstrate how collaboration will enhance service provision and best meet the objectives of the fund.

Partnership applications involve more than one organisation working collaboratively to achieve a shared goal; this could be on a local or regional basis. These partnerships can strengthen service delivery and broaden impact but must be structured clearly.

One organisation must act as the lead applicant and accountable body for the grant. Only the lead organisation must meet all the eligibility requirements and must submit the application on behalf of the partnership. If the application is successful, the lead organisation will be issued with the grantGrant fundingFunding agreementAgreement and will be solely responsible for receiving and managing the funding. Partner organisations do not need to meet the eligibility criteria.

Lead Organisation Requirements

The lead organisation must be an eligible VCFS provider, as outlined in the eligibility criteria.  The lead organisation will be solely accountable for the grant, including financial management, reporting, and delivery of agreed outcomes.

Partnership Agreements

A formal partnership agreement is not required at the application stage. 1. This section is specifically about partnership applications for this grant, as opposed to when your organisations works in partnership with others as part of your general services (e.g. we expect organisations to be working in partnership with their local authority in different ways, however this doesn’t require you to submit a formal partnership application together). However, if the application is successful, a Memorandum of Understanding (MoU) or similar agreement governing the partnership must be provided and approved before the funding is released.

We will ask you to upload a letter of confirmation from partners as part of your application.

Grants available

Eligible organisations will be able to apply for up to three3 years of revenue funding and one year of capital funding. Organisations can apply for between £50,000 and £200,000 per annum in revenue funding for any or all of the programme years.

Organisations may also apply for between £50,000 and £200,000 in capital funding, which can be requested for either Year 1 or Year 2 only. These limits are separate, which means that if an organisations applies for both revenue and capital in the same year, it may request up to £200,000 for revenue plus up to £200,000 for capital.

You can apply for both revenue and capital funding in your application. If you apply for revenue and capital funding, please ensure you outline interdependencies between the revenue and capital funding clearly in your bid.

Funding schedule and requirements

Funding will be issued to successful grant recipients annually, so it is essential that your cost schedule accurately reflects your funding needs for each year of the programme.

Annual funding timeline

All funding is subject to MHCLG officials having confidence of delivery outlined in the application and the signing of a Grant Funding Agreement (GFA). MHCLG reserves the right to hold an initiation project meeting with any grantee prior to this signing the GFA.

• Year 1 Funding: Available to claim from June/July 2026, with payment of grant from 1 JulyAugust
• Year 2 Funding: Payments are released in May 2027, subject to receipt of a grant claim
• Year 3 Funding: Payments are released in May 2028, subject to receipt of a grant claim

Capital funding availability

Capital funding will be available in either Years 1 or 2 only. You cannot apply for multiple years of capital funding.

Applicants seeking capital funding for building works will be asked to provide information on tenure security and whether they have engaged any professional advice relevant to their proposal. These questions are intended to help us understand the context and feasibility of the proposed works and score the bids appropriately.

All other information required to determine whether a capital project can be delivered within the preferred year will be drawn from the project plan, delivery milestones, and risks and mitigations sections of the application.

If your project is unlikely to be deliverable within Year 1, it may still be considered for Year 2 capital funding, you are encouraged to use Year 1 revenue funding to develop and prepare your capital project for delivery in Year 2 (from April 2027).

To be considered ready for Year 1 capital funding, you must demonstrate in your application that:

• the project has a clear and feasible delivery timeline - including any required approvals - that shows that capital works can be substantially delivered by 31 March 2027
• planning permission and any other necessary approvals are secured, submitted, or clearly scheduled
• tenure security is in place e.g. you have confirmation from the legal owner where works involve a building or site that you do not own
• you have engaged appropriate professional advice proportionate to the scale and nature of the capital project (this could include architect’s plans, quantity surveyors, designers, quotes from contractors etc.)
• qualified contractors are available to begin work within the necessary timeframe to meet Year 1 delivery deadlines

Revenue

Revenue grant can be used to fund:

• staff salaries
• project activities
• running costs including rent of premises and utilities
• small-scale refurbishments (e.g. minor decorations and repairs)
• equipment
• organisational development (e.g. workforce capability and capacity)
• contribution to the organisation’s overhead

Capital

Grants can be used to fund:

• the acquisition or upgrading of a fixed asset such as land, buildings and equipment, IT systems, fixtures and fittings.
• upgrading / enhancement works that would be undertaken to provide significant transformation and must be beyond that which could be achieved through repairs

Requirements

• capital funding must be fully spent by 31 March in the year of the grant
• if you are improving leased property, you will need to confirm whether the owner of the property has approved the works
• to be eligible for capital funding in Years 1 or 2 for building works you must evidence that work will be carried out by qualified contractors and have a clear timetable to achieve the work
• to prove readiness for capital funding in Year 1 for building works you must provide evidence of any required planning permission
• capital funding is not available for night shelters that have previously received capital funding from the Night Shelter Transformation Fund (NSTF).

Considerations

If applying for capital funding for building works, please give careful consideration to the following questions:

• ownership: who owns the building?
• what is the current use of the building?
• do you need planning permission, building regulations approval, listed building consent or landlords’ consent?
• have you appointed design team professionals, for example an architect, quantity surveyor, contract administrator, contractor, to help you?
• how have you estimated costs of the project?
• how will you procure a contractor?
• have you built in a sum for contingency into your budget?
• what kind of contract will you use?
• what risks are there in delivering the capital works to budget and on time?

Grants of either kind cannot be used to fund:

• hotel or B&B provision
• activities of a political or exclusively religious nature.
• lobbying or activity intended to influence or attempt to influence Parliament, Government or political parties
• using grant funding to petition for additional funding
• input VAT reclaimable by you from HMRC
• goods or services that you have a statutory duty to provide.
• payments reimbursed or to be reimbursed by other public or private sector grants
• contributions in kind (i.e. a contribution in goods or services, as opposed to money).
• depreciation, amortisation or impairment of fixed assets by you
• interest payments (including service charge payments for finance leases).
• gifts to individuals and promotional items
• entertaining (entertaining for this purpose means anything that would be a taxable benefit to the person being entertained, according to current UK tax regulations).
• statutory fines, criminal fines or penalties
• costs incurred before the issue of a funding agreement unless agreed in writing by us.
• temporary sleeping structures
• shared/communal sleeping facilities of any kind

VAT

• the grant we offer will be a maximum and so you should ensure all relevant costs are included. Any irrecoverable input VAT should also be included.

Governance, monitoring and performance management

Governance

• the Ending Homelessness in Communities Fund will be managed as a grant by the Voluntary and Community Sector (VCS) team within the Homelessness and Rough Sleeping (HRS) Directorate at MHCLG
• successful applicants will be issued a legally binding Grant Funding Agreement (GFA). In partnership arrangements there will be one lead and accountable organisation
• grantees will be required to provide an annual Statement of Grant Usage (SGU) signed by their auditor or other competent professionals

Monitoring

• organisations should expect to submit data and narrative reports detailing how funding has been used, progress against objectives, and outcomes achieved
• reporting requirements may include service delivery metrics, beneficiary data, and case studies
• organisations will be expected to cooperate with any external evaluation commissioned by the department, which may include surveys, interviews, or site visits
• further details on monitoring and evaluation requirements will be provided to successful bidders in due course

Performance management

• Key Performance Indicators (KPIs) will be agreed with successful applicants.
• all agreed KPIs will be included in a Grant Funding Agreement
• all KPIs will be monitored throughout the timeline of the grant programme – full details of this will be included within a Grant Funding Agreement

Assessment criteria - what to expect

• Your application will be assessed in three3 parts; eligibility (unscored), evaluation (scored) and declaration (unscored)
• We may contact you for more information
• If your application fails to meet the eligibility criteria it will not be considered
• The amount you apply for may not be the same as the amount you are awarded

Part 1: Eligibility and your organisation (unscored)

The eligibility check will be applied to all applications received by the closing date. This section will confirm if your organisation meets the eligibility criteria, and we will also undertake due diligence checks using standard government tools and procedures.

Eligible organisations

Please see the eligibility criteria above for a description of eligible and ineligible organisations.

In addition to being the type of organisation listed in the eligibility criteria above you must:

• have an annual income, as reported in your most recently published annual accounts, of less than £5 million
• operate in England
• have provided services directly to people at risk of, experiencing, or with a history of rough sleeping for at least three3 years
• have a letter of endorsement from the local authority in which area the project operates

Your organisation

We will also ask for information about your organisation, including your authorised signatory. If you are applying as part of a partnership, we will ask you to upload a document showing the other partner organisations’ support for the bid.

Part 2: Evaluation (scored)

Applications passing the gateway assessment will be assessed by MHCLG against the following 7 criteria:

1. Skills and experience
2. Proposal Part 1: What challenges are you trying to address
3. Proposal Part 2: Proposed project and alignment to objectives
4. Deliverability and risks Part 1: Milestones, project plan and governance
5. Deliverability and risks Part 2: Risk management
6. Cost and value for money
7. Outcomes and measuring impact

Each of the criteria will be assessed by applying a score of 0-3 where 3 is the highest available score for the criteria. Assessors will consider each application against each of the following criteria and will use their judgement to give scores for each of the criteria on the following basis. 0 - unacceptable / 1 – satisfactory / 2 – good / 3 – excellent. Any application scoring 0 on any of the criteria will be rejected. Each of the criteria is weighted to reflect its importance to this funding programme. The score for each of the criteria will be multiplied by its weighting. The weighted scores will then be added together to produce the total score for the application. The maximum possible total score is 300. The total score will be used to compare against other applications. MHCLG may make further enquiries before identifying preferred applicants.

Skills and Experience

This section is weighted at 10% and the maximum score is 30.

We will ask for:

• your organisation’s objectives
• your organisation’s key activities
• evidence of your skills and experience in delivering similar projects to the one you are proposing

Proposal part 1: what challenges are you trying to address

This section is weighted at 10% and the maximum score is 30.

We will ask for:

• the challenges you are trying to address (your response should set out locally focused evidence of need and demand. This is not assessed in isolation, assessors will consider how your proposed project responds to them)

Proposal part 2: proposed project and alignment to objectives

This section is weighted at 30% and the maximum score is 90.

We will ask for:

• information about your proposed project and how they align with the grant’s objectives (including planned activities by you or a partner organisation)

Deliverability and risks part 1: milestones, project plan and governance

This section is weighted at 25% and the maximum score is 75.

We will ask for:

• your proposed projects milestones, project plan and governance arrangements (This is not assessed in isolation, assessors will consider your key risks and how they relate)

Deliverability and risks part 2: risk management

This section is weighted at 5% and the maximum score is 15.

We will ask for:

• your key risks and planned mitigations

For capital projects that include building works, we will also ask about your tenure type and engagement with professional advisors – and you will be scored as part of a balanced assessment of your proposal’s deliverability and risk.

Cost and value for money

This section is weighted 10% and the maximum score is 30.

We will ask you to:

• upload an itemised budget for your proposed project in an Excel format. The budget should be broken down by year and by quarter. If you are applying for both capital and revenue funding, you will need to provide separate breakdowns for each.

Here is a link to an example budget template:

Ending Homelessness in Communities budget template

MS Excel Spreadsheet, 20.2 KB

Outcomes and measuring impact

This section is weighted 10% and the maximum score is 30.

We will ask you about:

• how the proposed project will strengthen partnership working and improve your local systems responsiveness to homelessness related issues
• the measurable positive impacts your project will have

Part 3: letter of support & declaration (unscored)

This part is not scored, but you will need to:

• upload a letter of support for your proposed activities from the homelessness and/or rough sleeping lead officer from the Local Authority in which your services are delivered
• confirm that your organisation has a UK bank account associated with it
• agree to reporting requirements that will be issued in your grantGrant fundingFunding agreementsAgreements
• confirm the information you provide in the application is accurate to the best of your knowledge

Please note:

• MHCLG can apply additional factors when considering the short list in order to select the final list for funding
• bidders should be aware that their application should not be seen as a full and final offer, MHCLG reserves the right to negotiate and amend bids accordingly with successful applicants.

Roles and responsibilities

Ministry of Housing, Communities and Local Government will:

• assess applications against the assessment criteria
• undertake due diligence
• determine the allocation of funding based on the assessment criteria
• notify applicants of assessment decisions
• establish Grant Funding Agreements with the preferred applicants
• provide funding as agreed in the Grant Funding Agreement
• establish and undertake a monitoring and evaluation regime for the duration of the project.

If successful, you must:

• provide evidence of costs, when requested
• put in place delivery processes
• oversee delivery and contractors
• be accountable for delivery
• procure appropriate service providers and ensure they satisfy due diligence checks
• cooperate with due diligence checks
• sign a Grant Funding Agreement
• deliver bids in line with agreed plans
• deliver bids to timescales and budget
• take part in monitoring and evaluation
• comply with the Subsidy Control Act 2022
• comply with the Equality Act 2010
• be responsible for providing the scheme in accordance with the UK’s international obligations in respect of subsidies

Definitions

Non-commissioned organisations

Organisations delivering specific services for which their main source of income is not formally contracted or funded by public bodies, such as local authorities or government departments.

Commissioned services	Describes services which are made possible under contract from a local authority.
Partnership	A group of organisations working together under a shared delivery plan, with one lead organisation responsible for managing the grant and coordinating delivery.
Community-based services	Local, non-residential support services delivered within the community to help people experiencing or at risk of homelessness or rough sleeping. This includes day centres, drop-ins, day services, befriending, peer support, floating support, advice and advocacy, and other practical or emotional assistance aimed at improving wellbeing, sustaining people in accommodation, delivering relational support and reducing isolation.
Day services	Services operating primarily during the day time.
Match-funding	Own resources used towards the total cost of project, alongside funders contribution.
Milestone	Key point in your projects timelines that signifies progress towards completion of the project. Examples include planning permission obtained, new staff in post or new service operational etc
Outputs	Outputs are things that can be measured as a consequence of the funded activities.
Outcomes	Outcomes are the short- to medium-term changes or benefits that occur as a result of the outputs.
Grant Funding Agreement	A grantGrant fundingFunding agreementAgreement is a legally binding contract between a funder (grantor) and a recipient (grantee) that defines the terms, conditions, scope, and objectives for using awarded funds.
Heads of terms	Document summarising the main commercial terms of a proposed agreement between parties.

Frequently Asked Questions (FAQs)

Technical/logistical questions

Q. Can we see details on the fund, application questions or the application form?

A. Full details of the fund, including information about the application form, are set out in the main body of the prospectus. Applicants should refer to the relevant sections of the prospectus for guidance on what is required.

Q. When can we apply for the fund?

A. The Frequentlycompetition Askedis Questionsscheduled (FAQs)to launch on the 23 February 2026 at midday on the gov.uk website. Applications will close on 31 March 2026 at midday.

Q. I am having issues logging in to my account to submit my application

A. If you are experiencing difficulties logging in, please contact ehcf@communities.gov.uk for support. Include details of the issue you are encountering so they can assist you as quickly as possible.

Q. Can you provide an offline copy of the application form?

A. No. Applications must be submitted via the online application system, and an offline version of the form is not available. However, details of the application questions and how they will be assessed are set out in the Assessment Criteria section of the prospectus. Applicants are encouraged to review these sections in advance to help them prepare their responses. Once the application goes live on 23 February, you will be addedable atto view all the questions, including saving each section as you go.

Q. Is there any possibility of extending the application deadline, or applying in a later date.year if the current timeline is too tight?

A. No. The application deadline cannot be extended, and applicants must apply within the current application window. MHCLG reserves the right not to allocate the full budget through this competition, depending on the quality and balance of applications received. MHCLG also reserves the right to hold a further round of funding.

Q. Can I use AI to support my application?

A: Artificial intelligence can be a useful tool to support your application, however, all examples and statements provided must be truthful, factually accurate and taken directly from your own experience. Where plagiarism has been identified (presenting the ideas and experiences of others, or generated by artificial intelligence, as your own), MHCLG reserves the right to reject applications.

Eligibility

Organisation type and status

Q. Is my organisation eligible?

A. Eligibility criteria are set out in full in the eligibility section of the prospectus. Applicants should review this section carefully to ensure their organisation meets all requirements before applying.

Q. Are faith-affiliated organisations eligible?

A. A. Yes, faith-affiliated organisations are eligible, provided they meet the organisational types and requirements set out in the eligibility criteria.

Q. My organisation has operated under a different name until recently, are we still eligible to apply?

A. You are eligible provided that you meet the eligibility criteria as set out in the prospectus. As part of our standard processes, we will carry out full due diligence checks on applicants before any funding is released.

Q. Can I apply for funding to deliver services in Scotland, Wales, or Northern Ireland?

A. No. This funding is available only for services delivered in England. Applications relating to projects or services operating in Scotland, Wales, or Northern Ireland are not eligible.

Q. Can I apply as an individual?

A. No. Applications must be submitted by an organisation. Individuals are not eligible to apply. Applicants should refer to the eligibility criteria section of the prospectus for the full list of eligible organisation types.

Eligible projects

Q. Can I apply for funding to set up a project/ intervention that does not currently exist but aligns with the aims of the fund?

A. Yes. You may apply for funding to establish a new project or intervention, provided it aligns with the objectives of the fund and you can demonstrate how the project will be delivered, and that the proposed outputs and outcomes will be achieved within the funded period.

Q. Can we apply for funding for a project that has already started, or does the EHCF only support brand‑new activity?

A. Yes, you can apply for funding for an existing project. The EHCF does not require projects to be new however, we are looking for projects that enhance the reach, capacity and quality of services supporting people at risk of or experiencing homelessness, whether through developing new provision or strengthening existing approaches.

Q. Can we apply for more than one project?

A. Each organisation may submit only one application. If you have multiple projects or funding needs, you must combine all proposed revenue and capital activities into a single application.

Q. Do revenue and capital requests need to be for the same project, or can they support different activities in different locations?

A. Revenue and capital funding do not need to support the same project. You must submit one application per organisation, and within that you may include both revenue and capital budgets. These can relate to different activities or locations, provided they all sit within a single coherent proposal. If there are any interdependencies between the revenue and capital elements, you should explain these in your application.

Q. If an organisation has multiple potential projects or works across several areas, can it submit more than one application to the EHCF?

A. Organisations may only submit one application to the EHCF as the lead applicant. If you have multiple projects or operate in several areas, these must all be brought together within a single lead application. However, an organisation may also participate as a partner in applications led by other organisations. This means you can be involved in more than one project overall, but you can only lead and submit one application.

Q. Our organisation has some commissioned services, can we still apply for this grant?

A. This funding is for primarily non-commissioned providers, while there may be some elements of your services which receive commissioned funding (funding received from the local council with a contract to deliver a particular service on their behalf), most of your services should not be commissioned.

Q. What if my organisation is part of a larger organisation?

A. If you share accounts and a governance structure, then the larger organisation must be the applicant and must meet the eligibility criteria and annual income limit.

Q. My organisation has a federated structure, am I still eligible to apply?

A. The organisation applying must have its own constitution and accounts, and meet the eligibility criteria set out in the prospectus to be eligible to apply.

Q. I previously received funding from the Night Shelter Transformation Fund (NSTF). Can I still apply for this fund?

A. The EHCF is not a continuation of the NSTF and will not award ongoing or continuation funding for transformation projects previously supported by NSTF. NSTF grantees are fully eligible to apply to the EHCF, but applications must be for distinct, enhanced or additional services, not for extending or maintaining work already funded through NSTF. This includes ongoing staffing costs for previously funded projects, which are not eligible. You may apply for capital funding, but with one important restriction: if you previously received NSTF capital funding for creating single‑room accommodation, you cannot apply for EHCF capital to deliver the same type of capital activity again.

Q. Can funding contribute to part of a project?

A. Yes, funding can contribute to a larger or longer-term project. We welcome projects that utilise match funding in order to deliver outcomes that meet the objectives of the fund. We will ask for evidence of the match funding secured and look for any match funding not secured to be picked up in your risk planning.

Turnover, reserves and financial criteria

Q. My organisation has an annual income of just over £5m, can we still apply?

A. To apply for this grant you should be a small to medium sized organisation with up to £5 million annual income in your most recent financial year. Organisations with a higher annual income may apply in very specific circumstances, e.g. being the only provider of services in a particular area or being marginally over the £5 million annual income threshold. MHCLG reserves the right to consider other exceptional circumstances. If this is the case, please contact us directly on ehcf@communities.gov.uk for advice before applying.

Q. Our income is over £5 million because we provide supported accommodation and received housing benefit. This is ring-fenced for the supported accommodation costs. Can we still apply?

A. No. To be eligible for this fund, organisations must have a maximum annual income of £5 million. This limit applies to your total income, including any funding that is ring‑fenced (such as Housing Benefit for supported accommodation). If your organisation’s overall income exceeds £5 million in the most recent financial year, you would not be eligible to apply.

Q. Does it matter what level of reserves we have?

A. Organisations with any level of reserves can apply to this fund. We do not have an assessment criterion based on the level of reserves held. However, you may want to provide brief contextual information in your application if you have particularly high or low free reserves, as this can help us better understand your organisation’s financial position. Provision of match funding through reserves will be viewed favourably in value for money terms.

Q. What is the difference between annual turnover and gross income, and how is it assessed for this grant?

A. We will assess your organisation’s total annual income as stated in your most recently published annual accounts. We do not distinguish between “annual turnover” and “income” for the purposes of this fund. What matters is the total income figure reported for your last full financial year.

Partnership and joint bids

Q. Can we apply on our own and be part of another partnership application?

A. Yes. An organisation may submit one application as a lead applicant and may also participate as a partner in another organisation’s application. However, an organisation can only be the lead applicant on one application. If you are named as a partner in another bid, that application must be led and submitted by a different organisation.

Q. Are partnership applications encouraged?

A. Applications are welcome from organisations applying either on their own or in partnership with other organisations. Where an application is made as a partnership, applicants should clearly demonstrate how collaboration will enhance service provision and help deliver stronger outcomes aligned with the objectives of the fund. Organisations applying on their own are also welcome to apply. In these cases, applications should explain how their proposal complements the wider homelessness system in its area. For further details on partnership applications please refer to the eligibility criteria in the prospectus.

Q. Do all partner organisations in a partnership application need to provide direct services to people experiencing rough sleeping for at least 3 years?

A. No, only the lead applicant must meet the eligibility requirements for this fund as detailed in the prospectus.

Q. For partnership applications, does the £5 million annual income limit apply to all partner organisations, or just the lead applicant?

A. The £5 million annual income limit applies only to the lead organisation submitting the application. In a partnership application, only the organisation acting as the lead applicant must meet the eligibility requirements.

Q. Can we be part of partnership applications in more than one local authority area?

A. Yes. Organisations may be part of partnership applications operating across more than one local authority area.

Q: Can we partner with regional, local, or combined authorities?

A. No. You must provide a letter of support from the local authority where the project is based; however, local authorities cannot be included as a formal partner in a partnership application. While the support of a Combined Authority or Mayoral Strategic Authority may be an important part of an application, these authorities cannot be a formal part of a partnership application.

Please note the difference between general partnership working (working together locally to deliver outcomes for people) and a partnership application (a formal partnership for the purposes of applying to this fund).

Local Authority Support

Q. Do I need a letter of support from my local authority?

A. Yes. Local authorities are expected to play a key role in planning provision for people experiencing homelessness and sleeping rough, so we want to know that you are working with local authorities towards delivery of agreed strategic plans. MHCLG strongly advises proactive engagement between VCFS organisations and local authorities around EHCF applications with genuine co-production of bids viewed as good practice. We require all applicants to upload the relevant local authority’s endorsement for their proposal, by letter or email, to ensure that bids complement (and do not duplicate) the council’s work. Supporting letters should come from officers with lead responsibility for homelessness and rough sleeping. Supporting letters from elected members/councillors will not be considered and so should not be submitted.

Q. In London can the sub-regional coordinator provide a letter of support?

A. In London, if your application is in more than one borough in a sub region, a sub-regional coordinator with responsibility for homelessness and rough sleeping may provide the letter of support.

Q. If our project spans multiple local authority areas do we need multiple letters of endorsement?

A. Applicants must provide at least one letter of endorsement from a relevant local authority. This should normally be from the authority most closely connected to where the project will be delivered or where the primary need is being addressed. Applicants may choose to provide additional letters where this strengthens the application, but a separate letter from every local authority area covered by the project is not required.

Q. Will applying for this fund have any impact on the homelessness funding we currently receive from our local authority?

A. No. This fund is intended to support the expansion, transformation or development of services, it is not intended to replace existing funding from other sources. VCFS groups can still receive funding from a local authority under the Homelessness and Rough Sleeping Domestic Abuse Grant. From 26/27, Government will be providing £3.6 billion in funding for homelessness and rough sleeping services over 3 years (26/27-28/29). Core funding for local authorities to prevent and tackle homelessness and rough sleeping will be through the Homelessness, Rough Sleeping and Domestic Abuse Grant (HRSDAG), as part of the Local Government Finance Settlement. This consolidated grant brings together the Prevention, Relief and Staffing element of the Homelessness Prevention Grant (HPG), the Rough Sleeping Prevention and Recovery Grant (RSPARG) and Rough Sleeping Accommodation Programme (RSAP) – worth £2.7 billion over 3 years.

Allocations to local authorities over the next 3 years have already been published.

Q. I can’t get hold of the appropriate person at the local authority - what should I do?

A. If you are unable to reach the relevant contact at your local authority, please email ehcf@communities.gov.uk . We will support you and advise on next steps.

Q. Can my letter of support from a local authority be an email?

A. Yes this is acceptable. Please note the application form will only allow the uploading of a PDF file.

Q. Can my letter of support come from a Combined Authority (CA) or Mayoral Strategic Authority (MSA)?

A. We recognise CAs and MSAs as important partners in reducing homelessness and rough sleeping. Where an application seeks to deliver services over multiple local authorities but in the same Combined Authority area they may wish to provide a support statement from the relevant CA. However, the support of the local authority where the activity is proposed will still be required and takes precedence.

Q. Is there a limit on the number of applications from the same local authority area?

A. There is no limit to the number of applicants who can apply from a given area.

Q. Is there a limit to the number of applications a local authority can support?

A. Local authorities are free to provide letters of support to any organisation they choose. LAs have been encouraged to support projects that are deliverable, align with local need and support better outcomes for people experiencing homelessness and rough sleeping in their area.

Q. What information have local authorities been given at this stage?

A. LAs have not been provided with detailed information on the EHCF prior to the prospectus being launched. Following the announcement of the fund in the HRS Strategy to End Homelessness in December 2025, LAs have been encouraged to reach out and engage with local VCFS organisations.

Q. Our area is due to go through Local Government Reorganisation, will this affect the funding?

A. No, we do not expect LGR to directly affect the awarding of this funding.

Funding

Q. What years can I apply for capital funding in?

A. You can apply for capital funding in either 2026/27 (Year 1) or 2027/28 (Year 2). Capital funding is only available in these two years, and you may choose which single year you wish to receive your capital allocation. If you intend to apply for capital funding in 2026/27, please review the Capital Funding Availability section of the prospectus. This sets out the readiness requirements for Year 1 capital, including planning approvals, owner consent, and contractor availability, to ensure that projects are deliverable within year.

Q. For Year 1, can the grant cover costs incurred before funding agreements are issued?

A. No. Costs incurred before a Grant Funding Agreement is issued cannot be funded, this date should be reflected in your budgeting for capital and revenue applications (salaries should be pro-rata etc). Applicants should therefore plan delivery so that funded activity begins only once a grant agreement is in place. Once a Grant Funding Agreement and the relevant grant claim form have been signed, applicants may incur and claim eligible costs before the grant payment is received.

Q. How will funding be allocated; will it be distributed by population size, homelessness acceptances, rough sleeping counts, or by local authority area?

A. The EHCF is a competitive grant fund, with applications assessed against bespoke scoring criteria set out in the Grant Prospectus. In making funding decisions, we will consider evidence of local need and the extent to which proposals are informed by, and aligned with, local priorities.

Q. Could we request the capital funding to go directly to the owners of the building?

A. No. All funding will be awarded to the lead organisation. The lead organisation will receive the grant and will be responsible for managing the expenditure as defined under the terms of the Grant Funding Agreement.

Q. Do we need to have planning permission and other approvals in place before applying for capital funding?

A. No, you don’t need all permissions or planning approvals in place before you apply. However, if you want to be considered for Year 1 capital funding, you must show that planning permission and any other required approvals are already secured, submitted, or clearly scheduled, and that the project can be delivered by 31 March 2027.

If these are not yet in place, we recommend you consider applying for capital in Year 2. Please refer to the Grants Available section in the grant prospectus for further information.

Q. What happens if we underspend?

A. Funding is awarded on an annual basis and must be spent in line with the milestones set out in your Grant Funding Agreement. At the end of each financial year, you will be asked to complete a Statement of Grant Usage (SGU) form which must accurately reflect how the funding has been utilised. Any underspends declared on your SGU form will be recovered by MHCLG.

Q. What happens if our project is delayed and how will this affect our funding?

A. The deliverability of your proposed project will be assessed as part of the application process, including your ability to complete activity and spend within the funded year. Funding must be fully spent by 31 March in the relevant financial year, and all spend will be monitored throughout the cycle of the grant. Where delays occur due to circumstances beyond your control, MHCLG will consider these on a case-by-case basis.

Q. Do you need evidence or quotes of the exact funding required?

A. Exact quotes are not required, however, applications that set out clear and realistic plans for how funding will be used - including well-judged indicative costs, how affordability has been considered, and whether professional advice has been sought (particularly for capital projects) - will be scored more highly. We recognise that some capital budgets may not be finalised within the application window. In these cases, applications should provide their best estimates and explain how figures will be refined as the project develops.

If you are unsure of your capital budget, we would encourage you to apply for capital funding in Year 2 and note in your application that the budget is an initial estimate and will be confirmed as plans progress. Successful applicants will be required to confirm how the funding has been spent through monitoring processes, for which further guidance will be provided in due course.

Q. Can I apply for capital funding and revenue funding at the same time?

A. Yes. Applicants may apply for both capital and revenue funding as part of a single application. Where doing so, you should clearly set out how each element of funding will be used and how together they will support the delivery of the proposed project.

Q. If we are awarded a multi-year grant, will payment be dependent on progress?

A. While MHCLG is not providing grants on a payment-by-results basis, it does reserve the right to withhold payments or exit any Grant Funding Agreement on the basis of grantees’ performance in delivering against the terms and conditions of the Grant Funding Agreement.

Q. Is the funding envelope the same for partnerships and sole organisation applications?

A. Yes. The maximum annual revenue funding for all applications is £200,000, and the maximum capital funding available in your chosen year is also £200,000. This applies equally to partnership applications and sole-organisation applications.

Eligible and ineligible spend

Q. Can we apply for funding to purchase a property?

A. Yes, funding to support the purchase of a property to provide services for people experiencing or with an experience of rough sleeping is eligible. However, grantees will need to provide evidence that they can complete their spend on time in their application form so – for example - it may be beneficial to have a property without an onward chain or which your organisation already owns/leases. You will be asked about your readiness for capital building works as part of the Deliverability and Risks section of the assessment.

Q. Can we apply for costs to provide temporary accommodation?

A. No, temporary accommodation has a specific statutory definition, with the relevant local authority responsible for its procurement.

Q. Can a bid include architects’ plans?

A. Yes.

Q. Can we use funding for lease costs?

A. Yes, you can use revenue funding for lease costs. For further information on eligible spend please see the Grants Available section of the prospectus.

Q. Can I apply for capital funding for a building that my organisation doesn’t own?

A. Yes. You can apply for capital funding for a property you do not own, provided your organisation has a right to occupy and use the property and you have approval from the property owner for the proposed works.

Q. Can capital be used for developing community space rather than accommodation?

A. Yes. Capital funding can be used to develop community spaces and accommodation. Capital funding is intended to improve and modernise building-based facilities that support people at risk, or currently experiencing homelessness and rough sleeping. This includes enhancing buildings operating day services or other community spaces where multi-agency work, prevention activities, or support services take place.

Q. Can I apply for funding to rent short-term accommodation (e.g. hotel rooms or B&B accommodation?

A. The EHCF cannot fund emergency/short-term accommodation such as hostels, B&Bs or communal night shelters, regardless of whether people are non-priority or not eligible for LA temporary accommodation. However, the fund may support self-contained, single unit accommodation if it fulfils a defined local need and aligns with the objectives of the fund detailed within the prospectus.

Q. Can we apply for funding for a communal night shelter?

A. The EHCF will not fund the setting up or maintenance of any communal winter night shelters. The fund will, however, support the transition of these services towards providing single room accommodation for rough sleepers year-round, including modular structures. Organisations that previously received NSTF capital funding specifically to transform from communal to single‑room accommodation cannot apply again for capital to deliver the same transformation. Organisations that provide day services and support to people who are staying in a communal night shelter are able to apply.

Q. Can I use the funding for ongoing running costs?

A Yes, if they are directly related to the delivery of the funded project that enhances the quality and accessibility of services.

Q. Do we need to specify exactly how the funding will be used, or can funding be requested flexibly?

A. You will need to provide an itemised budget, broken down by quarter, setting out how the funding will be used. Where some costs are uncertain at the point of application, applicants can include a contingency of up to 5% of the total funding requested. Any contingency must be clearly identified within the budget, and you should include a brief explanation of the risks or uncertainties it is intended to cover.

Q. Can we use this grant funding to pay for immigration advice?

A. Yes. Immigration advice is an eligible activity where it helps people experiencing or at risk of homelessness/rough sleeping to resolve their immigration status as a route to supporting them to move away from homelessness/rough sleeping. Any immigration advice must be regulated by the Immigration Advice Authority (formerly known as OISC).

Q. Can we use this grant funding to support people with No Recourse to Public Funds (NRPF)?

A. The EHCF can be used to support anyone, including individuals with restricted or unclear eligibility. The types of interventions this could fund include IAA regulated immigration advice, and increasing quality and availability of support services.

Q. Is this funding suitable for organisations working with adults only, or does it include those who support families and young people experiencing homelessness?

A. The grant prospectus sets out in full the key objectives of the EHCF. We particularly welcome applications across any objectives that deliver tailored support to locally identified groups facing barriers to engagement, and that complement existing local authority provision. We expect the majority of projects we fund through the EHCF to be for single people. However, there may be circumstances where local authorities and their VCFS groups identify a local need for support for groups including families and young people. These applications will need to state how they achieve the objectives set out in the prospectus and complement the existing local authority offer.

Q: Does the fund support projects focused on specific target groups facing barriers to accessing services (for example, people with experience of the criminal justice system or LGBT+ people), and is funding ring‑fenced for particular groups?

A: The fund welcomes applications that deliver tailored support to locally identified groups facing barriers to engagement, where this aligns with the objectives of the fund and complements existing local authority provision. This may include, for example, projects supporting long term rough sleepers, people with experience of the criminal justice system, LGBTQ+ people, women, non-UK nationals, young adults, or other groups who face additional barriers to accessing homelessness support. However, funding is not ring-fenced for particular groups, Applications are assessed on the strengths of their proposal, ability to deliver against the fund’s objectives and create local systems that prevent homelessness and promote long-term recovery.

Q. Should budgets include the VAT that may be charged by suppliers? Is VAT an eligible cost? Can grant be claimed for VAT incurred?

A. If your organisation is not VAT registered, you should include all of the VAT charged by suppliers in your project costs. If you are VAT registered, include only the VAT that is non-recoverable by you.

Match funding

Q. Is match funding required?

A. No, but contributions from other sources may strengthen your application.

Q. What constitutes match funding?

A. Match funding is commonly understood in two ways - as “actual” and “in-kind”. “Actual” match funding can include match funding from reserves and other external funding sources. “In-kind” funding includes non-cash funding such as staff time and/or volunteer hours.

Q. Can match funding be used for a project over the maximum grant thresholds?

A. Yes. Match funding is encouraged and can be used in addition to any grants. If you plan to use match funding, please set this out clearly in your budget including the source of the match funding, the amount, whether it is secured or expected and which year(s) it will be used.

Other

Q. Can we arrange a meeting to ask some questions?

A. We encourage applicants to first review the EHCF Prospectus and FAQs in full, as most common queries are addressed there. If you have specific questions that are not covered in the prospectus and FAQ, please contact ehcf@communities.gov.uk

Q: Can you provide further details on monitoring and evaluation?

A. We will aim to ensure that the level of monitoring and evaluation is proportionate to the level of funding. MHCLG will issue further guidance regarding monitoring and evaluation to successful applicants in due course.

Q. Are there branding or communications requirements attached to the funding?

A. UK government should be acknowledged in all marketing and promotional material as the funding source. Requirements will be detailed for successful applicants in due course; general guidance on MHCLG branding can be found here.

Q: Are there rules regarding building ownership?

A. You do not need to own the building from which your organisation operates, but in your application, you should provide assurances that you have permission from the owner / landlord and that you have a right to occupy and use the building, if your planned spending will include improvement works to the property.

Q: If rough sleeping numbers are low in my area, is there still merit in applying to this fund?

A. Low rough sleeping figures alone will not preclude an application, instead, we will consider how well proposals respond to local need and contribute to preventing homelessness and sustaining positive outcomes.