The Limitations of Cost Analysis in Relation to Homelessness

The increasing focus on cost comparisons between services can lead to misleading conclusions about their ef fectiveness. Whilst cost compari sons can be a useful tool both for benchmarking services and as a means of advocating for services for unpopular groups, data can be difficult to collect and to interpret in a meaningful way. Data may focus on that which is measurable rather than that which is important or effective. It may focus on hard outcomes rather than soft outcomes, and may potentially distort decisions about which services offer the best value.