Zakat in the UK saving local authorities millions of pounds by stopping homelessness.

Zakat in the UK saving local authorities millions of pounds by stopping homelessness.

National Zakat Foundation briefed senior politicians in Parliament this week following the release of a new report showing local Zakat is saving cash-trapped local authorities millions of pounds across the UK.

NZF’s first economic evaluation of Zakat distributed through its Housing Fund was written with the assistance of the University of Indiana’s Lilly Family School of Philanthropy. The report’s key findings are that for every £1 of Zakat money from NZF that keeps families in their homes, £73 is saved by local authorities and other agencies. Between September 2022 and September 2023 NZF’s payment to 824 people at threat of eviction was £377,000. This saved additional costs of £28 million to cash-strapped local authorities.

Applications to NZF have risen 200% in two years with demand outstripping supply. The risk of a homeless crisis amongst many unseen vulnerable Muslim families currently supported by NZF is very high. The parlous financial state of many UK Local Authorities is likely to impact further on the most vulnerable in our communities. Birmingham City Council announced £300 million of budget cuts this week while on March 1st NZF received close to 3000 applications for help in just one day.

Dr Sohail Hanif, CEO of NZF, said “these findings demonstrate the true power of local Zakat giving. By capturing the huge economic and social benefit of the work of just one of our funds we can work more closely with government and other charity partners to intervene earlier and help families build a better life.”

NZF is now planning an assessment of the total economic value of all Zakat collected in the UK, to be presented later this year.

Download the Economic Impact 2024 Report here.

Image from left to right:
Hina Bokari – Member of the London Assembly
Dr Sohail Hanif – CEO of NZF
Afzal Khan MP for Manchester Gorton.