DLUHC is making decisions about future funding of the scheme without a proper understanding of how effective funding has been in supporting those taking part in the scheme to date. Local authorities initially received funding of £10,500 per arrival. Since 31 December 2022, DLUHC has reduced this to £5,900 for each arrival. DLUHC considers that local authorities’ costs decreased once the scheme had been set up. Although DLUHC has mandated local authorities to provide data on the use of its funding for 2023–24, the Department still relies on voluntary reporting on how many people on the scheme are currently experiencing homelessness to inform future funding decisions. Despite the lack of complete data, DLUHC increased funding to prevent homelessness in the 2023 Autumn Statement as it considers it understands the housing pressures local authorities are facing. Similarly, the government announced an extension of thank you payments for a third year in the 2023 Autumn Statement, but could not estimate how many sponsor relationships would have broken down if thank you payments had not been extended. DLUHC asserts that to set up the scheme at pace and respond to emerging issues, it needed to balance getting a full picture of how the scheme operates against over-burdening local authorities. Recommendation 4: DLUHC should, as part of its Treasury Minute response, explain: Homes for Ukraine 7 • what evidence it used as the basis for its decision to continue funding thank you payments and the additional homelessness prevention funding announced at the autumn statement; and • how it will ensure that is has a robust evidence base going forward so that any future funding is targeted towards the most effective interventions and where there is most need.