Council Spending on Emergency Accommodation is Out of Control

A new article from homelessness charity Crisis shows that the cost of homelessness in England has reached an unprecedented level, with local councils spending a staggering ￡2.29 billion on temporary accommodation between April 2023 and March 2024.

This figure, representing a 29% increase from the previous year, underscores a growing crisis. Half of this expenditure—￡1.34 billion—was allocated to nightly paid accommodations and bed and breakfasts, hardly what anyone would consider to be suitable forms of temporary housing. This reliance on costly and inadequate solutions is symptomatic of a much deeper issue: a chronic shortage of social housing.

As the number of households forced into temporary accommodation hits record highs, the human cost of this crisis becomes painfully evident. Families are left to endure unsafe, unstable living conditions, with far-reaching consequences for their health and well-being.

These figures raise an urgent question: Why are we spending billions on temporary fixes when these funds could be invested in long-term, sustainable housing solutions?

The state of council spending

Overview of the data

The latest figures released by Crisis paint a grim picture of council spending on temporary accommodation.

This reliance on such costly and inadequate options highlights a critical flaw in the current system. Instead of providing stable, long-term housing solutions, councils are forced to spend vast sums on short-term fixes that do little to address the root causes of homelessness.

The increase in spending on these unsuitable accommodations—up 55% from the previous year—reflects a worsening crisis that demands immediate attention.

The Human Impact

It’s not all about the money. While the financial cost of temporary accommodation is breathtaking, the human cost is incalculable. Thousands of homeless families are trapped in a cycle of uncertainty, forced to live in conditions that are far from ideal. Bed and breakfasts, often damp and overcrowded, offer little privacy or comfort. Nightly paid accommodations can be even worse, frequently lacking the most basic amenities and stability.

The impact on mental and physical health can be severe. The constant uncertainty, the lack of a permanent home, and the poor living conditions contribute to insecurity and despair. Children, in particular, are profoundly affected, with their education, social development, and emotional well-being all at risk.

Crisis Chief Executive Matt Downie has emphasised that homelessness strips people of their dignity and traps them in a spiral of anxiety and insecurity. The figures from this past year make it clear that the current approach is financially and morally unsustainable.

The root causes of rising costs

Chronic Shortage of Social Housing

A decades-long failure to build enough social housing is at the heart of the spiralling costs associated with temporary accommodation. The chronic shortage of affordable, stable homes has left many local authorities with no choice but to rely on temporary solutions.

As the availability of social housing has dwindled, the demand for emergency accommodation has surged, driving up costs and leaving more households trapped in a cycle of uncertainty.

Inadequate Housing Benefits

Another significant factor contributing to the rise in temporary accommodation costs is the inadequacy of housing benefits. Current benefit levels often fail to cover the cost of renting in the private sector, especially in areas with high housing demand.

This shortfall leaves many households unable to secure or maintain stable housing, pushing them toward homelessness and, eventually, into temporary accommodation.

The need for immediate government action

It’s clear that local councils cannot bear the burden of these rising costs alone. Crisis is calling on the Westminster government to step in with urgent financial support.

The upcoming Autumn Budget presents an opportunity for the government to address the escalating crisis by allocating additional funds to local authorities—this funding is essential not only to help councils manage the immediate demands of temporary accommodation but also to allow them to explore more sustainable solutions.

Crisis has also emphasised the importance of adjusting housing benefits to reflect current market conditions better. Ensuring that housing benefit covers the cheapest third of rents would provide immediate relief for those at risk of homelessness, helping them to secure and maintain stable housing. This, in turn, would reduce the number of households needing temporary accommodation, easing the financial strain on local authorities.

The need for immediate government action cannot be overstated. Without urgent intervention, the costs associated with temporary accommodation will continue to spiral out of control, placing an unsustainable burden on local councils and failing those who need help the most.

Our government can help reduce the reliance on temporary accommodation and support the development of more sustainable, long-term housing solutions by increasing funding for local authorities and adjusting housing benefits. These are short-term actions and not a complete solution—but they are critical steps toward addressing the immediate crisis and laying the groundwork for a more stable and secure future for those at risk of homelessness.

What next?

Despite the challenges, there is reason for optimism. The solutions required to address homelessness are within reach, and with the right commitment and collaboration, we can make significant progress. The ongoing discussions around the Autumn Budget provide an opportunity for the government to make meaningful changes that will benefit those in need and society as a whole.

As we look forward, let’s remember that the fight against homelessness is not just about providing shelter—it’s about restoring dignity, security, and hope to those who need it most.

Every investment in sustainable housing is an investment in a better, fairer society. The time to act is now, and with the right approach, we can turn the tide on homelessness and build a future where everyone has a place to call home.

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