Funding for the Rough Sleeping Initiative will be increased by 30% this year to enable councils to deliver up to 6,000 new bed spaces.
Councils will also use their share of the £115m funding boot to create 2,500 support staff to help vulnerable rough sleepers access specialist mental health or addiction services.
Research shows that funded areas have 32% less rough sleepers than those without the initiative.
Housing secretary, Robert Jenrick, said: ‘We are focusing relentlessly on this issue and our efforts have already led to the first nationwide fall in rough sleeping in a decade – and the areas funded by our Rough Sleeping Initiative have seen rough sleeping numbers fall around a third more than they would be without this vital programme, but we need to go further.
‘That is why we are providing this funding so vital work can continue as we set out to end rough sleeping once and for all.'
