Councils across England have spent £2.9 billion on temporary accommodation, with government data revealing a 4% increase from £2.8 billion the previous year. This rise in homelessness costs coincides with a new requirement for councils to inform schools and GP practices when a child is placed in temporary accommodation.
Of the total expenditure, £1.9 billion, or 64%, was allocated to nightly-paid accommodation, hostels, and bed and breakfasts. Over the past five years, the total amount spent by local authorities in England on housing and homelessness services has risen by 88%, from £1.6 billion in 2020/21, bringing the cumulative spend since 2020/21 to £13 billion.
Matt Downie, chief executive at Crisis, stated that the government should unfreeze Local Housing Allowance (LHA) rates to address the temporary accommodation crisis. Mairi MacRae, director of policy and campaigns at Shelter, urged the government to commit to building more social housing in the upcoming Autumn Budget.