Renowned homelessness scheme gutted with 1500 fewer people to benefit

One of Victoria’s most successful homelessness programs is set to be slashed by 75 per cent amid the worst housing crisis in decades, as the Allan government scrambles to find savings ahead of the May budget.

Some 1500 fewer people will benefit from the state’s From Homelessness to a Home scheme when its funding is cut from July, government tender documents seen by The Age show. Just 500 new clients experiencing rough sleeping or other forms of persistent homelessness will benefit over three years under the overhaul.

Mark Barlow has been through the homelessness program and is now in permanent housing. Credit: Simon Schluter

Graduates from the program – which supports unhoused people in finding permanent homes within 12 months and has a 90 per cent success rate – and the peak body for homelessness are demanding the decision be reversed and for similar measures to be ringfenced from budget cuts.

The development comes as internal Homes Victoria data, also seen by this masthead, reveals public housing stock available to homeless Victorians declined between June and December despite Labor’s Big Build program. Insiders say this is because of the way the massive infrastructure projects is being managed, with existing stock being sold or demolished before the development of greenfield sites.

The Allan government is under growing pressure when it comes to housing and economic management more broadly. More than 60,000 Victorians were on an affordable housing waiting list at June last year and the average waiting time for family violence victim-survivors has blown out from 11 months to almost 24 months this decade.

Meanwhile, Victoria has spent $67 million to delay Melbourne’s long-awaited airport rail link, a figure the equivalent of half the money for homelessness and housing support flagged in last year’s state budget. Friday’s mid-year financial report also confirmed net debt increased by $11.7 billion to $126.8 billion in the six months to December last year.

The Age revealed in January that Labor’s election commitments were at risk of being held back and that government departments had been told to reduce their spending requests. Just last week, this masthead reported that eight level crossing removals that Labor promised by 2027 would be delayed.

From Homelessness to a Home was established to house rough sleepers in hotels during the pandemic and to provide permanent homes and support services when lockdowns ended. The state government did not answer questions about the program’s overhaul.

Council to Homeless Persons chief executive Deborah Di Natale accused the government of quietly cutting a homelessness initiative with a 90 per cent success rate.

“It’s clear from evidence on the ground that From Homelessness to a Home is having its funding quietly slashed despite its incredible success,” Di Natale said.

“We received assurances from the government that funding would be ongoing, yet now the program is being shut down and its replacement is 75 per cent smaller. Victoria can’t afford homelessness program cuts while there’s a once-in-a-lifetime housing crisis engulfing our state.”

The 2021 census showed homelessness increased by 24 per cent in Victoria from the 2016 count. Every night, there are about 30,000 people across the state who don’t have a permanent place to call home.

Cheltenham resident Mark Barlow, 61, is one of the thousands of people who have been through the From Homelessness to a Home program and now live in permanent housing.

The former cleaner became homeless after a relationship breakdown and had to live in a Mornington motel, paid for by local community groups, for about 12 months during the pandemic. He now lives in a two-bedroom apartment close to Southland shopping centre, with a bus stop outside his front door.

“I’m very grateful,” Barlow said. “They should keep the program going. Homeless people are in need. Find the savings elsewhere.”

There were 88,189 affordable dwellings in Victoria at June 2023, according to Homes Victoria’s public data. But in December, that figure had dropped to 88,135 – a net loss of 54 homes in six months – according to the organisation’s internal dashboard.

While the government says it has built thousands of affordable homes this decade and it has a few months remaining to ensure net growth year-on-year, opposition housing spokesman Richard Riordan said the numbers were a damning indictment.

“They demolished 586 homes just last month alone,” Riordan said. “There’s some 3000 fewer bedrooms today than what there were six years ago. And when the government announced [last] week the tenders for the demolition of some of the public towers here in Melbourne … where on earth are we going to have [those residents] sleeping at night?

“It’s simply bad management and it’s not good enough. Victorians are going to continue to suffer.”

Housing Minister Harriet Shing said the government was responding to the rising demand for one-bedroom homes and that more than 9000 homes had either been completed, or construction was under way, since the Big Housing Build started in November 2020.

“We’ve got a big job to do,” Shing said. “We are not walking away from that. We are investing the largest-ever funding envelope for social housing in the history of any jurisdiction in Australia.”

Asked if she could rule out cuts to homelessness or other housing programs by May 7, Shing said: “I don’t know what’s in the budget … but I have advocated really hard to make sure that we can meet the needs of a range of communities across the state who are experiencing rough sleeping or homelessness.”

In last year’s housing statement, then-premier Daniel Andrews unveiled an ambitious plan to build 800,000 homes by 2034, the equivalent of 80,000 homes a year. Last week, Premier Jacinta Allan declined to back the 80,000 figure, as did Shing on Sunday. Both preferred to refer to the overall target.

Industry experts say Victoria is not on track to build 80,000 homes this year. Australian Bureau of Statistics data published last week revealed that home building approvals had sunk to their lowest level in more than a decade.

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