Soaring Expenses in Temporary Homeless Shelters by 25%
In England, the number of households living in temporary accommodation has reached an all-time high of over 131,100, a figure that marks the highest recorded since records began, according to recent reports. This escalating trend has raised concerns among local authorities and housing advocates, who are urging the government to take immediate action.
Cllr Tom Hunt, chair of the Local Government Association's growth committee, has highlighted the worsening temporary accommodation crisis facing councils. He emphasised that as more people turn to their council for help, local authorities are having to stretch their budgets further.
In the 2024/25 financial year, councils in England spent £2.8bn on temporary accommodation. A significant portion of this spending, 40%, was allocated for nightly paid, self-contained accommodations, representing a 79% increase from the previous year. Notably, out of the £2.8bn spent in 2024/25, £844m was spent on housing people in emergency B&Bs and hostels.
The increase in spending on temporary accommodation has been substantial, with the total spending over the last five years increasing by 118%, amounting to over £10bn. This upward trend has been accompanied by a 25% increase in costs compared to previous years.
Mairi MacRae, director of campaigns and policy at Shelter, has commented that the housing emergency is draining billions in public funds and families are paying the ultimate price. She called on the government to ramp up the delivery of social rent homes to 90,000 a year, setting a clear overall target for the initiative.
Cllr Hunt has also proposed changes to the way that government reimburses temporary accommodation costs for councils. He suggested that the government should make the reimbursement rate the current rate, instead of one that's 15 years old. He further noted that current housing benefit reimbursement rules for temporary accommodation are outdated, as councils must pay landlords according to current market rates, whereas reimbursement for councils is linked to 2011 rental rates.
Among these households, there are 169,050 homeless children, a concerning statistic that underscores the urgency of addressing the housing crisis. Cllr Hunt called for the government to restore the Local Housing Allowance (LHA) rates to at least the 30th percentile of local rents beyond 2025-26.
In a related development, the German government under Chancellor Friedrich Merz has insists on reducing expenses for housing for social welfare recipients as part of a reform to lower costs for Bürgergeld (citizen's money) by around ten percent, equivalent to about five billion euros. However, this move has raised questions about its potential impact on the growing housing crisis in England.
As the housing crisis continues to escalate, it is clear that urgent action is needed to address this pressing issue and ensure the well-being of those affected.
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