A Northern Ireland Assembly committee has warned that essential homelessness services face collapse within the current financial year absent urgent government action. The Committee for Communities report details mounting pressures from rising demand and inadequate funding.

As of September 2025, 62,314 people were recorded as homeless, according to analysis of NISRA figures by the Simon Community. More than 90,000 individuals remain on the social housing waiting list. Official data likely understates the crisis due to hidden homelessness in insecure arrangements.

Full Duty Applicant numbers are increasing, indicating growing acute need. Cases involve more complex issues including mental health and trauma. Services have shifted to crisis response over prevention, leading to higher long-term costs in housing, health and social care.

The Supporting People Programme aids around 20,000 people yearly with housing-related support. Providers face an extra £5.5 million in costs for 2025/26 from National Living Wage and Employer National Insurance rises, with no funding increase to offset them. Frontline staff earn as little as £12.66 per hour, causing recruitment and retention issues.

Reliance on temporary accommodation such as hotels has grown, despite higher expenses and negative impacts on families. Social housing supply fails to match demand, with waiting lists expanding.

Committee Chair Colm Gildernew MLA stated that homelessness services confront rising demand, complex needs and an unsustainable funding model. He noted the system over-relies on expensive crisis measures instead of early support, which lacks effectiveness and value.

The committee issued five recommendations: secure multi-year Supporting People funding with inflation adjustments; review homelessness legislation to prioritise prevention; extend the 'threatened with homelessness' period; form a cross-departmental task force; and enhance data collection for all homelessness types.

Gildernew urged the Department for Communities and Northern Ireland Executive to adopt the recommendations promptly to avert service reductions amid record demand.