Community services will receive $58.8 million in new funding, the ACT Government has announced, after months of warnings from sector leaders that rising inequality and cost-of-living pressures were pushing more Canberrans towards crisis.

The funding includes a $23.7 million permanent uplift for community services; $15.4 million for homelessness services; $14.8 million for community legal assistance and justice support; $894,000 for LGBTQIA+ services and advocacy; and $100,000 for Sexual Health and Family Planning ACT.

“This Budget investment continues our focus on reducing disadvantage by strengthening the community services that many Canberrans rely on,” Chief Minister Andrew Barr said.

Treasurer Chris Steel MLA said the Budget responded to the needs of the community sector by providing funding certainty.

“Our government is backing in the services that Canberrans rely on when they are doing it tough,” Mr Steel said.

Social services “are being asked to help more and more people that have never needed community supports before”, ACTCOSS CEO Dr Devin Bowles said.

Demand for emergency accommodation and homelessness services in the ACT has far outpaced supply, housing peak body ACT Shelter CEO Corinne Dobson said. “This increase will help to keep services operating.”

The St Vincent de Paul Society Canberra/Goulburn also says demand for its services have increased.

“More people are reaching out for help with housing, financial stress and basic essentials — often for the first time — and that demand shows no sign of slowing,” CEO Lucy Hohnen said.

Vinnies will receive $2.3 million for Samaritan House, its 13-bed crisis accommodation facility for homeless men; $2.1 million for Roadhouse, its nightly food and material aid service in Civic; and $1.4 million for the Blue Door Drop-in Centre.

“The ACT Government’s four-year commitment will help ensure our services can continue to respond to growing need, while providing consistent, practical support to people experiencing hardship,” Ms Hohnen said.

ACTCOSS welcomed the government’s pre-budget announcement.

“The permanent uplift of $23.7 million across the next four years will give certainty to organisations that they can continue to provide this desperately needed assistance,” Dr Bowles said.

He said making the uplift permanent and indexed would help organisations plan, recruit and retain specialist staff; commit to long-term service delivery; and communicate available services to clients.

“Funding upstream services that keep people out of crisis is a good investment for the ACT Government,” Dr Bowles said.

“The community sector provides agile services that it can tailor to individuals’ needs. Investments like this reduce pressure on other areas of government spending, like hospitals. The human pay-off is that it keeps people out of crisis.”

Dr Bowles said the sector would examine the Budget Papers for details about where funding would be allocated to specific services and areas of need.

ACTCOSS said the government also needed to increase funding for public housing, to provide pathways from short-term and crisis accommodation into permanent housing.