Local Authorities: Temporary Accommodation Costs

Baroness Elliott of Whitburn Bay Excerpts

Tuesday 22nd April 2025 Lords Chamber

Asked by

[Baroness Elliott of Whitburn Bay]

To ask His Majesty’s Government what assessment they have made of the level and costs of temporary accommodation provided by local authorities.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, this Government recognise that homelessness levels are far too high and that this can have a devastating effect on those involved. It also places a huge financial strain on councils providing temporary accommodation. We have allocated an extra £233 million to councils directly for homelessness, taking total funding to nearly £1 billion this year. The Deputy Prime Minister is chairing an interministerial group to develop a long-term strategy to deliver the long-term solutions that we need.

[Baroness Elliott of Whitburn Bay (Lab)]

I thank the Minister for that reply. What are the Government doing to address some of the underlying drivers of the huge increase in the financial costs to both local and central government on this issue?

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for that question. A number of factors are driving the high level of temporary accommodation costs, such as Section 21 evictions, which we are addressing through the Renters’ Rights Bill—there will be plenty of discussion on that later today. There is also the cost due to supply issues. We have a target of 1.5 million homes, which is a stretching target but achievable. There is the lack of social housing, to address which we will have the biggest increase in social and affordable housing in a generation. Some £800 million has already been allocated for the affordable housing programme and £2 billion for future years. There is also not enough homelessness prevention work. We have increased the homelessness prevention grant for 2025-26 to the highest level it has ever been, meaning that almost £1 billion is allocated for homelessness.