The effectiveness and cost-effectiveness of homelessness prevention and assistance programs

Summary

This project undertook an analysis of the incremental benefits and whole-of-government budgetary costs of both providing and not providing assistance to homeless people and those at risk of becoming homeless. The study focused on Western Australia, and involved collaboration with various government departments in analysing administrative source data. It was found that potential annual whole-of-government savings are at least twice as large as the annual cost of delivering effective homelessness programs. This includes a range of different government funded services including health and the justice system. For example, people experiencing homelessness use more health services than average with female SAAP clients using on average $6779 more in health costs than average in the 12 months prior to support. It was also found that homelessness programs produced a range of effective outcomes for their clients including better housing, increased quality of life and feelings of safety. Over the 12 month study, dependence on government income support fell and the number of people in paid employment doubled. The programs also reduced rental arrears and tenant liabilities for those at risk of homelessness.


Project Number: 80306
Research Theme: Homelessness
Project Leader: Flatau, Paul
Funding Year: 2005
Research Centre: Western Australia

Research and Policy Bulletin

Research & Policy Bulletin

Issue 104: The cost-effectiveness of homelessness programs

Homelessness programs produce positive outcomes for their clients at relatively low cost and can reduce health, justice and police expenditure.

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Description

The aims of this project were to:

  • Assess the costs and benefits of programs designed to assist families who are homeless or who are at risk of becoming homeless.
  • Estimate the accommodation, health, well-being, education and training, labour market, justice and income support costs to families, service providers, government and the broader community of not undertaking programs designed to assist both homeless people and those at risk of becoming homeless,
  • Provide evidence on the outcomes per unit costs of homelessness intervention strategies and the Federal and State whole-of-government program budget costs of not intervening to provide support for homeless people.

This proposal addressed the priority research question: What are the whole of government costs and benefits of not preventing homelessness including, for example, in relation to health, crisis accommodation, policing, criminal justice and housing assistance? The project provided service agencies and Federal and State Departments and bodies (e.g., the Commonwealth Advisory Committee on Homelessness, the WA State Homelessness Strategy Monitoring Committee, the SAAP Coordination and Development Committee (CAD)) with firm evidence of the benefits and costs of both providing assistance (of different forms) and not providing assistance to homeless families and families at risk of becoming homeless.

The study’s geographical scope is the Perth metropolitan area and the regional towns and cities of South-West Western Australia (e.g., Mandurah, Busselton). The target population consists of families at risk of becoming homeless or who are in a primary (improvised dwellings, living in the streets), secondary (those in temporary accommodation or in emergency or transitional accommodation) or tertiary homelessness (living in boarding houses). The research design of the study included the following elements: Program enumeration and classification. Federal and State Government and agency programs that assist homeless families and those at risk of becoming homeless will be listed and cross-classified against their target group, the departments/agencies responsible for funding, administering, and delivering the program and areas of potential direct client impact. Homeless families’ needs, program take-up and utilisation and outcomes.

A Homeless Family Survey was administered in face-to-face interviews with families. The Survey contained modules on housing histories, needs, program take-up and utilisation and housing/shelter, income support, primary health, mental health, substance abuse, social relationship/functioning, justice, labour market and education and training and quality of life outcomes. A Service Provider Survey was administered to service provider agencies. This information was supplemented with semi-structured interviews. Primary research evidence from these two sources was supplemented by existing administrative client data, evidence from AIHW SAAP data and current research evidence from service providers. Program costs and non-intervention costs.

Homelessness program cost data was derived from consultations with the Project Advisory Group, FaCS, program and service providers, the WA State Homelessness Strategy Monitoring Committee and from administrative data sources (e.g., the SAAP National Data Collection). In terms of whole-of-government budgetary impacts, the project co-ordinated with the WA Department of Premier and Cabinet, Treasury and the FaCS at the Federal level in the assessment of the impact that non-intervention may have on the government’s budgetary position. Cost-effectiveness estimates: Estimates were derived of the mean cost of providing assistance to homeless and at-risk families and of not providing assistance. Mean benefits per unit cost were estimated for the assistance and non-assistance cases. A Project Advisory Group was established for the present project comprising members from service provider agencies.

More Information

Download now Research and Policy Bulletin: Issue 104: The cost-effectiveness of homelessness programs
174 KB PDF Document

Download now Final Report: No. 119: The cost-effectiveness of homelessness programs: a first assessment
1.4 MB PDF Document

Download now Final Report: No. 119: The cost-effectiveness of homelessness programs: a first assessment - appendices
1.8 MB PDF Document

Download now Positioning Paper: No. 092: The effectiveness and cost-effectiveness of homelessness prevention and assistance programs
814 KB PDF Document

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