Homes for Ukraine Scheme Faces Funding Cuts, Raising Concerns of Homelessness

The future housing security of thousands of Ukrainians who sought refuge in the UK following the Russian invasion is in jeopardy, warns the National Audit Office (NAO).

The watchdog cautions that if the UK government proceeds with its plans to terminate funding for the Homes for Ukraine scheme, more than 130,000 people, including 246 individuals in Swindon, could face the risk of homelessness by March next year.

The NAO’s investigation into the Homes for Ukraine scheme reveals a pressing concern: the impending end of funding and sponsorship arrangements.

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As the first wave of three-year visas granted to Ukrainians under the scheme approaches its expiration in March 2025, the funding is set to dry up from March next year. This puts those under the scheme at substantial risk, with the report stating, “As more sponsorship arrangements come to an end, the risk of homelessness is likely to increase.”

Since the scheme’s inception in the spring of 2022, nearly 74,000 UK households have applied to host Ukrainian families. The £2.1 billion initiative provided hosts with payments of £350 per month in the first year and £500 per month in the second year. However, crucially, these payments end a year before the end of the three-year visas.

This means that as the first batch of visas expires in March 2025, the sponsorship will be phased out from March 2024.

In Swindon, the impact of these changes is significant. Councillor Janine Howarth, Swindon Borough Council’s Cabinet Member for Housing, emphasised the local implications, stating, “We’re currently supporting 196 Ukrainians in Swindon under the Homes for Ukraine scheme.”

Of these, 120 are still living with their hosts, while 76 have moved into private accommodation. The council is also providing support for 50 more Ukrainians under the Family Scheme Visa and Ukraine Extension Visa.

Howarth expressed concerns about the potential withdrawal of the monthly ‘Thank You’ payments from the Government, which assist hosts in covering extra expenses such as energy and food bills.

“If these payments were to be withdrawn in March, and we don’t yet know if they will be, it could force some hosts to end their accommodation of guests under the scheme.”

“Our amazing Warm Welcome Team is actively supporting guests to access private let accommodation, and as a Council, we are committed to fulfilling our statutory duties to prevent homelessness among Ukrainians in Swindon.”

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