Cash-strapped Councils Cough Up Billions For Temporary Accommodation

Councils in Britain have spent more than £3.5bn on temporary accommodation for homeless families in the last five years, data obtained by the BBC shows.

In that time the annual cost has risen 43%, with councils spending £851m on temporary housing in 2015 alone. Homeless charity Crisis said the number of people in temporary accommodation was rising at an “alarming rate”, but the government counters this by saying temporary housing “ensures people have a roof over their head”.

But the Local Government Association said the costs were “unsustainable”.

Temporary accommodation is provided to households that councils accept are homeless, but the criteria for who is eligible varies. This includes bed and breakfasts, hostels and private rented accommodation.

Figures obtained by the BBC through the Freedom of Information Act show that most of the cost – and the increase – has occurred in the overheated London housing market. Almost two thirds of the £3.5bn (61%) has been spent in the capital, while 85% of the increase in costs since 2011-12 also occurred there. Just 10 London boroughs accounted for two thirds of the total increase in spending over the past four years. Scotland spent more on temporary accommodation (£750m) than England when London is excluded (£578m).

“More and more people are finding themselves in desperate circumstances,” said Jon Sparkes, chief executive of Crisis. “Prevention is better than cure, and for homeless people this is especially so. It has already been shown to work in Wales. We now need similar change in England. The Homelessness Reduction Bill currently making its way through Parliament aims to do just that.”

English councils, including those in London, have seen their costs rise by almost 60%. While councils will be refunded for some of the costs – for instance through housing benefit or by charging some tenants rent for their temporary properties – many local authorities say they are increasingly having to subsidise temporary accommodation.

The Local Government Association, which represents councils in England and Wales, said: “Many councils are struggling to cope with rising homelessness and to find suitable accommodation for those in need. The increasing use of temporary accommodation is not only financially unsustainable for councils but is making it increasingly difficult for them to spend money on preventing homelessness, and is disruptive for those families placed in such accommodation.”

However, a spokesman for the Department for Communities and Local Government said: “Time spent in temporary accommodation ensures people have a roof over their head and the number of households in temporary accommodation is well below the 2004 peak. This government has invested £500m to tackle homelessness – including prevention funding and £40m for councils to help rough sleepers. We are also backing Bob Blackman’s [MP] Homelessness Reduction Bill, which will also provide vital support for many more people.”