Hampshire County Council says “good progress” is being made as it continues to withdraw £2 million of annual funding for homelessness support services.

The funding cut is part of the council’s savings programme, approved by cabinet in October 2024, which aims to reduce the authority’s budget deficit.

The plan includes ending all social inclusion funding and stopping support for non-statutory homelessness services. All existing contracts and grants will finish on March 31, 2026.

When the proposal was first announced, Richard Gammage, chief executive of Two Saints, warned that the loss of services could have a knock-on effect on around 900 people who could end up rough sleeping in Hampshire.

The services now being phased out currently provide short-term support to people living in multi-occupancy hostels, supported accommodation and in the community.

At present, around 76 people live in hostels funded by the county council, with another 66 in supported accommodation that relies partly or entirely on council funding.

Over the past year, council officers have been working to put the changes into effect.

This has included extensive work with district and borough councils, as well as existing service providers, to make sure new arrangements are in place before county-funded contracts end.

Some local authorities have already negotiated their own funding deals to keep services running.

The county council has also developed transitional plans to protect people who rely on the services that are ending.

A key part of this is a referral pathway offering Care Act assessments to anyone currently using homelessness support funded by the county. If someone is found to have eligible needs, the council must meet those needs.

So far, 61 referrals have been made. As of October 2025, 44 assessments have been completed and 16 people have been judged to have eligible needs. The referral pathway will stay open until February 28, 2026.

Speaking at the Health and Adult Social Care Select Committee on Tuesday, November 25, Jess Hutchinson, the council’s director of adult’s services, said the transition remains on track despite concerns raised when the cuts were first announced.

“In my view, the progress is good. We continue to work positively and proactively to support people during the transition,” she said.

With just over a year until the funding ends entirely, officers say they will continue working with partners to minimise disruption and ensure people affected by the changes are supported.