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Social housing furnished tenancy schemes save over double the investment, report finds
Every pound spent on social housing furnished tenancy schemes saves the public purse over double the investment, a new report has found.
The report on a cost benefit analysis of local welfare assistance and furnished tenancies, commissioned by charity End Furniture Poverty, found that schemes which provide essential items and support to people can make significant savings across the NHS, criminal justice and the Department for Work and Pensions.
For every pound spent on local authority crisis support schemes, over £14 is saved in the wider public purse, the analysis showed.
The schemes can provide furniture, white goods, heating appliances, clothing for expectant mothers or babies, as well as other support including food and fuel vouchers, debt relief and help in accessing employment or training.
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The research found that councils also make substantial savings from local welfare schemes, with an average of £11 of savings for every pound invested.
According to the report, at least 9% of the UK population live in furniture poverty and more than a million people live in ‘deep furniture poverty’, without three or fewer items.
Only 2% of social homes are currently let as furnished, compared with 29% in the private rental sector. At least 26% of social housing tenants live in furniture poverty.
The report said: “We also know from our annual local welfare assistance reports that people face a postcode lottery, with 36 local authorities in England without a scheme and others woefully underfunded.
“While the Household Support Fund has helped people with food and fuel, very little of it was used for furniture and appliances.”
End Furniture Poverty is calling for 10% of social homes to be provided as furnished.
The report highlighted the benefits for social landlords which have furnishing schemes, including reduced rental arrears and void costs, as well as increased tenancy sustainment.
“Furnished tenancies help people to avoid furniture poverty and while more landlords are introducing new schemes, we need legislation to ensure they are provided to every social housing tenant,” the charity said.
Claire Donovan, head of policy at End Furniture Poverty, said: “We know that ending furniture poverty is the right thing to do, to stop children having to sleep on the floor and to ensure families have fridges and cookers to safely store and prepare fresh food. Now this research shows that it makes good fiscal sense, too.”
She said the charity understands that the government is “facing significant financial challenges” and wanted to be able to “prove the value of investing in ending furniture poverty with specific figures”.
“We are also able to show the savings to local authorities with reduced demand in homelessness presentations, temporary accommodation and social services support, leading to specific savings.
“We hope the government has the vision to see these longer-term savings mean investment now is vital,” Ms Donovan said.
In addition to at least 10% of social homes being provided furnished, End Furniture Poverty is calling on the government to consider legislation if landlords are slow to respond.
Ms Donovan said: “We have worked with our partners in FRC [a group of social enterprises] to create Furniture Flex, a furniture rental scheme that requires no capital outlay from social landlords. While we know that furnished tenancies are primarily for those on benefits, and we support the government’s ambitions to help more people back into employment, moving people into empty boxes is not the right way to achieve this.
“People need safe, secure and furnished homes to help them back onto their feet. With a rental scheme, they can return items and remove the service charge if and when that happens. And there are some groups, such as pensioners and those with disabilities, who will always need help.”
Pete Marland, chair of the economy and resources board at the Local Government Association (LGA), said: “This report emphasises the benefits of investing in local welfare support to offer practical help with essential goods.
“While it is positive the Household Support Fund – which provides the vast majority of local welfare funding – has been extended to March 2026, the LGA and councils want to work with government on a more sustainable, preventative approach.
“Material and financial support will remain an important part of this offer as part of a wider, locally integrated approach to connect households to other help and advice, and ensure that we learn from people experiencing hardship to inform future support and services.”
A spokesperson for the Department for Work and Pensions said: “No one should be living in poverty – that’s why we’ve extended the Household Support Fund until March 2026 to help struggling families with the cost of essentials.
“Alongside this, we are increasing the National Living Wage, uprating benefits and helping over one million households by introducing a Fair Repayment Rate on Universal Credit deductions, while our Child Poverty Taskforce develops an ambitious strategy to give all children the best start in life.”
