Andy Burnham used his first speech as Prime Minister to launch an “urgent national drive” to end rough sleeping “at the earliest opportunity”.

Number 10 said the announcement will be backed “from day one” by an additional £340 million – taking overall funding to record levels.

The policy forms a key part of his pledge on the steps of Downing Street to “help everyone to live well and build a more preventative state, investing in success rather than paying for failure”. Crisis research shows that a year of rough sleeping costs an estimated £20,128 per person, versus £1,426 for a successful prevention intervention.

The new prime minister says he rejects the notion that ending rough sleeping will take decades or that it can’t be done at all. The experience of ‘Everyone In’ during the pandemic, showed that with the right political will, it can be done. He is clear that the rough sleeping crisis has been caused by years of systemic failure in national policy. Westminster has too often turned a blind eye to rough sleeping, which has been all too apparent to local leaders. Ambitious local leaders will now be backed with the full support of central government.

Before walking up Downing Street to address the nation, Andy Burnham met people with experience of sleeping rough. He heard how it can trap people in a cycle of crisis, poor health and insecurity. He believes that thousands of people sleeping rough every night is not inevitable, “but a choice by politicians”, and that he will take immediate action to change how the government treats the issue.

Urgent first steps will begin to help those sleeping rough over a long period to move into secure housing. This includes beginning the acquisition of suitable homes, identifying those most in need and starting to provide housing and support without delay.

The new funding is the first phase of investment in a wider five-year programme that will provide homes and support for thousands of the people facing the most severe and long-term homelessness. Further steps will be set out before the autumn.

The new prime minister says the move will benefit everyone: transforming the lives of people who have spent long periods on the streets, strengthening towns and communities, and reducing the pressure that repeated crisis interventions place on the NHS, the criminal justice system and other public services.

Local leaders will lead the delivery of the programme, building on proven local-led approaches that have helped to tackle rough sleeping in communities across the country. The new funding, which represents the opening investment, will provide 1,200 homes and intensive support for at least 3,000 people.

Prime Minister Andy Burnham said: “For too long, we’ve been told that ending rough sleeping will take decades or even that it’s impossible. I’m not having that.

“This is something a government can fix if it chooses to. Today, I’m choosing to.

“On my first day as Prime Minister, I’m announcing this government’s commitment to finally end long-term rough sleeping across the UK at the earliest opportunity.

“We’ll get to work immediately, bringing together national and local government with the investment needed to get it done.

“This is the kind of Britain I want us to be – a country where everyone has the security of a roof over their head, and where no one is left behind or written off. Let’s bring back hope.”

Responding to the announcement, Rick Henderson, Chief Executive of Homeless Link, said: “This is the kind of ambition our members on the frontline of the homelessness crisis have been demanding.

“Ensuring everyone has a safe and secure alternative to sleeping rough is crucial, but this must go alongside more radical changes to the system such as the housing first philosophy and preventative approaches adopted elsewhere in Europe – preventing homelessness wherever possible, and ending rough sleeping through guaranteeing everyone has a home call their own, and the support they need to keep it.

“There is precedent. Andy Burnham has driven positive initiatives such as A Bed Every Night and Housing First in Greater Manchester. Our network of homelessness providers up and down the country stand ready to support him in his efforts – to end rough sleeping and to prevent all homelessness moving forwards. Homelessness is a scourge on our society and a human tragedy that can be completely avoided with the right political leadership.”