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Councils to demand ‘urgent’ intervention from chancellor as temporary housing costs soar
Council leaders will call for “urgent” government intervention over the soaring costs of offering temporary accommodation that is threatening to “overwhelm” their budgets.
In a letter that will be sent to chancellor Jeremy Hunt, the District Councils’ Network will warn that local authorities face having to withdraw homelessness services unless the government steps in.
“Without urgent intervention, the existence of our safety net is under threat," the letter said. “The danger is that we have no option but to start withdrawing services which currently help so many families to avoid hitting crisis point.”
The leaders have also warned that the crisis could impact other “cherished” council services, while the NHS will have to “pick up the pieces”.
The letter was drawn up following an online summit on Tuesday attended by the representatives of 158 local authorities.
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Government figures released earlier this month revealed that councils spent £1.74bn on temporary accommodation between April 2022 and March this year. The letter warned of an “unprecedented” number of people facing homelessness turning to councils for help.
Prior to the meeting, Stephen Holt, leader of Eastbourne Borough Council, which jointly hosted Tuesday’s meeting, described the situation as “wholly unsustainable” for local authorities.
Among the help the councils are calling for is raising Local Housing Allowance rates to cover “at least” 30% of local market rent, an extra £100m funding for Discretionary Housing Payments, and plus a £150m top-up to the Homelessness Prevention Grant for 2024-25.
The letter also called for “long-term funding, flexibility and certainty” for councils to boost the supply the supply of social housing.
The leaders called for a meeting with Mr Hunt before his Autumn Statement this month due to the “urgency” of the crisis.
A government spokesperson said: “Local authorities have seen an increase in core spending power of up to £5.1bn or 9.4% in cash terms on 2022-23, with almost £60bn available for local government in England.
“We are committed to reducing the need for temporary accommodation by preventing homelessness before it occurs in the first place, which is why we are providing councils with £1bn through the Homelessness Prevention Grant over three years.
“We are also delivering a fairer private rented sector for tenants and landlords through the Renters’ Reform Bill, which includes abolishing Section 21 ‘no-fault’ evictions.”
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