The Better Society Index

A new lens on how impact investment can help tackle social issues and support public service delivery across the UK.

  • The Better Society Index is a data-led exploration of how impact investment can support public service delivery across the UK, bringing greater clarity, consistency and visibility to how social issues are understood and addressed. While existing public records can tell part of the story, they do not always capture the full complexity of social challenges – particularly the lived experience and ‘grey areas’ of housing insecurity that matter most and are often hardest to address, especially at a local level.

    The Index brings together a wide range of data – from Freedom of Information (FOI) requests and local authority returns to government datasets and consumer polling – to build a fuller picture of where public services are under pressure, where social need is going unmet, and how public–private collaboration can help bridge the gap. Over time, these insights will provide regional and national snapshots of some of the UK’s most pressing social issues, identifying where and how cross-sector responses can help close gaps in public service delivery.

    This edition focuses on homelessness - a challenge that cuts across local and national policy, public sentiment, and social investment priorities.

Why homelessness?

Homelessness extends far beyond rough sleeping. Across the UK, millions of people experience housing insecurity in less visible but equally destabilising ways, including sofa surfing, risk of eviction, or time spent in temporary accommodation. Our findings suggest that housing insecurity has affected more than 13.5 million people* across the UK in recent years.

The Index shows that public perceptions of homelessness are shaped by local context and lived experience. Almost half of the public believe homelessness is either static or worsening, while at the same time overestimating the level of public spending on homelessness relief and prevention. Charities and social impact enterprises are voted the most trusted organisations to deliver housing and homelessness services.

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  • 1 in 4

    People say they or someone close to them has experienced housing insecurity in the past 5 years

  • 49%

    Believe homelessness is a significant issue in their local area and getting worse (43%).

  • 71%

    Of the public trust charities and social enterprises to deliver housing and homelessness services effectively.

  • What the data shows about the scale of homelessness

    • National polling shows more than a quarter (27%) of respondents – equivalent to 13.5 million people in the UK - say they or someone close to them has experienced housing insecurity in the past five years. Among younger adults aged 18–34, this rises to 47%, highlighting the growing prevalence of housing instability across younger generations in the UK.
    • The public overestimates how much of their council tax goes to homelessness services – believing that 28% of their council tax goes towards the issue, which is almost ten times higher than preliminary local authority returns suggest. Half of respondents (50%) say they do not know how much is spent in their area.
    • Councils across the UK reported spending £1.65 billion on homelessness services in 2024/25, with a median year-on-year increase of 10.62%. Temporary accommodation continues to be a major driver of costs, with councils recording more than 3,000 people needing housing every night for the last year alone.
    • Over half of the public surveyed (56%) are supportive of public-private partnerships to deliver housing and homelessness services, with charities and social enterprises voted the most trustworthy (71%) organisations to deliver services effectively.

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Why impact capital for homelessness?

Looking more closely at how homelessness relief and prevention is funded, the data shows that:

  • Pressure is being placed on public finances, with over £1.6 billion spent on homelessness by local authorities across the UK in 2024/25 and a median uplift of 10.62% versus the previous year.
  • Over 52% of respondents said they would be willing to invest a portion of their savings or pension in products addressing social issues like homelessness, provided this has minimal negative impact on returns
  • Over half of the public surveyed (56%) are supportive of public-private partnerships to deliver housing and homelessness services, with charities and social enterprises voted the most trustworthy (71%) organisations to deliver services effectively.
  • These issues place immense pressure on central and local government. The public believes increased resources could help, but few would support increased spending from the public purse. Across the country, there is appetite for impact capital and public-private partnerships to address homelessness.

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  • Why this matters?

    The Index is not just about identifying problems but enabling better solutions. By spotlighting where gaps exist and where the burden falls hardest, the Better Society Index helps local authorities make more informed, outcomes-focussed decisions. It supports policymakers to better understand public appetite for change. It enables social investors to target resources where they can have the greatest impact. And it gives the public greater visibility of how their area is performing and what is possible with the right support.

    Social impact investment stands ready to help fill funding gaps and enable government and local authorities to deliver better services. Done well, it can generate measurable, lasting social impact that improves people’s lives, alongside a financial return for investors.

  • This data highlights an appetite for innovative solutions: a majority of savers and pension holders want their money to make a difference, public attitudes to private investment working alongside Government are positive, and charities and social enterprises are overwhelmingly trusted to deliver services effectively. Social investment combines these key ingredients to tackle entrenched social issues while ensuring tax payer money goes further.

    Drew new

    Drew Ritchie

    Investment Director

Appendix

Notes

*Population estimates calculated by taking proportion of adult UK population that corresponds with proportion of nationally representative polling sample. 

**Estimate calculated from Better Society Capital’s Market Sizing Report 2024, which estimates the UK’s social impact investment market to be £10bn at the end of 2023, with pension funds representing 21% of this – of an estimated £3.8 trillion of total UK pension assets. 

Methodology

  • Public Opinion Research: Nationally representative online public survey of n=2,032 UK adults over the age of 18 commissioned by Better Society Capital. Nationally representative sample using quotas and weighting by age, gender, UK region and GE2024 vote. Fieldwork conducted 28 – 30 October 2025.
  • Freedom of Information Requests: analysis of 258 local authority FOI responses returns received. Contains public sector information licensed under the Open Government Licence v3.0.

Analysis of:

  • Ministry of Housing, Communities and Local Government (2024), Local Authority Revenue Expenditure and Financing England: Revenue outturn multi-year data set Ó Open Government Licence V3.0
  • Local authority revenue expenditure and financing England: 2024 to 2025 individual local authority data – outturn Ó Open Government Licence V3.0
  1. Revenue outturn housing services (R04) 2023 to 2024 Ó Open Government Licence V3.0
  2. Revenue outturn housing services (R04) 2024 to 2025, Ó Open Government Licence V3.0
  • Ministry of Housing, Communities and Local Government, Tables on Homelessness, Ó Open Government Licence V3.0
  • StatsWales, Households for which assistance has been provided by outcome and household type (2025), Ó Open Government Licence V3.0
  • Cabinet Secretary for Housing, Homelessness in Scotland: 2024 – 2025, Ó Open Government Licence V3.0
  • For the comparison of data received through FOI, filling missing values and interpretation.
  • Office for National Statistics (2025), Population Estimates for the UK, England, Wales, Scotland and Northern Ireland: mid-2024 for latest estimates of the UK population