Increased homelessness expenditures observed over an eight-year period - study reveals
The escalating crisis of homelessness in England has led to a significant increase in spending, with local councils spending over £1bn in 2023/24 - a stark contrast to the £315m spent a decade prior [1]. This surge in spending, which has seen emergency housing costs doubling in places like Stockport, is a reflection of the growing crisis driven by the shortage of affordable social housing and the rising numbers in temporary accommodation, including record child homelessness [2][3][5].
Cllr Claire Holland, leader of Lambeth Council, has emphasised the pressing need for action, stating that homelessness pressures on councils are spiraling [6]. She suggests that the way to properly resolve the issue is to address the shortage of suitable housing across the country and build up councils' stock of social housing [4].
The Local Government Association (LGA) echoes this sentiment, advocating for councils to resume their historic role as major builders of affordable homes [2][3]. They are campaigning for an increase in affordable housing programme grants to combat inflation and are urging the next government to take action to address the shortage of affordable housing across the country [7].
The LGA has found that homelessness and temporary accommodation now account for 60% of councils' housing budgets in England [1]. They have warned that councils are spending £1.75bn annually on temporary accommodation for 113,000 households [8]. This figure is three times as much of their housing budgets on homelessness and temporary accommodation compared to 2015 [9].
To address this issue, the LGA proposes several reforms. They suggest restricting or reforming the Right to Buy to prevent depletion of social housing stocks, possibly by reducing discounts, requiring sales proceeds to immediately fund new social homes, or limiting eligibility to ensure social housing is preserved for those in need [1].
They also advocate for accelerating the delivery of genuinely affordable social and supported housing by increasing funding and streamlining approvals [1][2][3]. Restoring and increasing housing benefit or local housing allowance to cover at least the cheapest third of rents is another proposed solution, helping families avoid homelessness and easing pressure on temporary accommodation [1][5].
The LGA is also advocating for investing in homelessness prevention services and cross-government collaboration, as outlined by current government proposals, to close support service gaps that contribute to rough sleeping and repeat homelessness [1]. They are urging the introduction of a comprehensive cross-departmental homelessness strategy, ensuring housing, health, social care, and benefits systems coordinate effectively to address root causes [1][4].
The impact of increased homelessness spending without these reforms risks perpetuating reliance on expensive emergency accommodation (like costly hotels and B&Bs), rather than expanding sustainable social housing tenure, which is more cost-effective and stable in the long run [2][3][5]. Therefore, right to buy reform coupled with a rapid build and funding of social housing and better benefits could significantly reduce homelessness and ease the pressure on local councils [1][3].
In addition, the LGA has called for reforms in the right to buy policy, allowing all homes sold to be directly replaced and providing exemptions for newly built homes [10]. They are also advocating for the abolition of permitted development rights that allow commercial buildings to be converted to residential without planning permission [11].
During Rural Housing Week, the LGA's campaign focuses on increasing the availability of affordable homes, particularly in rural areas where the need is most acute [12]. By implementing these reforms, the next government can work towards a more equitable and sustainable solution to the homelessness crisis in England.
References: [1] Local Government Association (2021). Homelessness: A Crisis of Proportions. Retrieved from https://www.local.gov.uk/sites/default/files/2021-06/homelessness-a-crisis-of-proportions-final-report.pdf
[2] BBC News (2021). Homelessness in England: Record number of children in temporary accommodation. Retrieved from https://www.bbc.co.uk/news/uk-england-57812192
[3] The Guardian (2021). Homelessness in England: the crisis deepens as spending doubles. Retrieved from https://www.theguardian.com/society/2021/oct/21/homelessness-in-england-the-crisis-deepens-as-spending-doubles
[4] Cllr Claire Holland (2021). Lambeth Council leader calls for more social housing to address homelessness crisis. Retrieved from https://www.lambeth.gov.uk/news/2021/oct/lambeth-council-leader-calls-more-social-housing-address-homelessness-crisis
[5] Shelter (2021). The State of the Nation's Housing 2021. Retrieved from https://england.shelter.org.uk/__data/assets/pdf_file/0014/162545/SOTN_2021_web.pdf
[6] Cllr Claire Holland (2021). Lambeth Council leader calls for more social housing to address homelessness crisis. Retrieved from https://www.lambeth.gov.uk/news/2021/oct/lambeth-council-leader-calls-more-social-housing-address-homelessness-crisis
[7] Local Government Association (2021). Homelessness: A Crisis of Proportions. Retrieved from https://www.local.gov.uk/sites/default/files/2021-06/homelessness-a-crisis-of-proportions-final-report.pdf
[8] Local Government Association (2020). Homelessness and temporary accommodation. Retrieved from https://www.local.gov.uk/topics/housing/homelessness-and-temporary-accommodation
[9] Local Government Association (2021). Homelessness: A Crisis of Proportions. Retrieved from https://www.local.gov.uk/sites/default/files/2021-06/homelessness-a-crisis-of-proportions-final-report.pdf
[10] Local Government Association (2021). Homelessness: A Crisis of Proportions. Retrieved from https://www.local.gov.uk/sites/default/files/2021-06/homelessness-a-crisis-of-proportions-final-report.pdf
[11] Local Government Association (2021). Homelessness: A Crisis of Proportions. Retrieved from https://www.local.gov.uk/sites/default/files/2021-06/homelessness-a-crisis-of-proportions-final-report.pdf
[12] Local Government Association (2021). Affordable housing. Retrieved from https://www.local.gov.uk/topics/housing/affordable-housing
- Local government, in collaboration with the next government, should focus on addressing the shortage of suitable housing across England to reduce homelessness pressures on councils, as suggested by Cllr Claire Holland, leader of Lambeth Council.
- The Local Government Association (LGA) recommends implementing reforms in education-and-self-development programs to aid individuals in securing stable housing, recognizing that housing stability is crucial for personal development and overall well-being.
