Efforts to eradicate homelessness in the North East will be stuck in “crisis response mode” after the region was given the lowest share of new funding in England, charities have warned.

The Government announced an £84 million cash boost last week aimed at preventing people becoming homeless this winter.

But there are fears that the North East’s allocation falls “far short of what is needed”.

Our region will receive only £1.5 million from that pot – considerably lower than any other part of the country.

The second-lowest allocation is more than double the North East’s, with the East of England given £4 million, while the North West will receive £8.2 million and London £36.5 million.

That is despite concerns about a significant spike in rough sleeping here.

While the North East does have the lowest overall total of people estimated to be sleeping rough of any region in England, the numbers have been increasing considerably.

There were an estimated 124 people sleeping rough across the North East on a single night in autumn 2024, according to the Ministry of Housing, Communities and Local Government (MHCLG).

That was the highest since records began in 2010 and was more than double the figure of 61 in 2022.

And the number of households per 1,000 classed as homeless or at risk of homelessness is at or above the national average in nine of the 12 council areas across the North East and Tees Valley.

Stephen Bell OBE, CEO of Changing Lives, said that its rough sleeper outreach team “see first-hand how people are being pushed into homelessness by the rising cost of living, a shortage of affordable homes, and pressure on local support networks”.

Mr Bell told the Local Democracy Reporting Service that the latest MHCLG funding “does not reflect the scale of the challenge our region is facing”.

He added: “This funding will offer some short-term help, but it falls far short of what is needed to create lasting change. Without sustained, fair investment that reflects regional need, homelessness services will remain in crisis response mode instead of being able to plan and prevent.

“We urge government to work with local authorities and frontline organisations to ensure future allocations give areas like the North East the resources they need, so that homelessness can become rare, brief, and non-recurring for everyone who experiences it.”

Ruth Parker, chief executive of South Shields-based charity Emmaus North East, agreed that the £1.5 million allocation “leaves homelessness services in the North East yet again in a crisis management situation rather than being able to plan longer term solutions, including preventing homelessness in the first place”.

She added: “The £84 million funding announced by the government is welcomed, particularly with rising numbers of rough sleepers and with winter approaching. Although the North East has the lowest number of rough sleepers, there was a 39% increase from 2023 to 2025 and the allocation of £1.5 million is only 1.7% of the national allocation, which is just not enough.”

The new funding, announced on World Homeless Day last week, includes nearly £70 million to be shared among 62 councils to improve local homelessness services, a further £11 million to help families with children living in temporary accommodation access basics like wifi and laundry, and £3 million to support people with drug or alcohol related issues who are sleeping rough.

Labour said it was also investing £950 million to increase the supply of good temporary accommodation and abolishing ‘no fault’ evictions through its Renters’ Rights Bill.

Housing secretary Steve Reed said last week: “Homelessness is a moral stain on our society. Growing numbers of people have been abandoned to sleep rough on the streets and children left in squalid, overcrowded conditions. “This government will not stand idly by and allow that to continue. We will make different choices. That’s why we are investing £1 billion to give homeless people the security of a roof over their heads and get back on track to end homelessness for good.”

MHCLG was contacted for a response.