Housing Benefit: Temporary Accommodation

Baroness Thornhill Excerpts

Wednesday 28th February 2024 Lords Chamber

Asked by

[Baroness Thornhill]

To ask His Majesty’s Government what assessment they have made of the adequacy of the Housing Benefit subsidy for temporary accommodation; and whether they have plans to provide further support to local authorities in providing emergency and temporary accommodation.

[Baroness Thornhill (LD)]

I beg leave to ask the Question standing in my name on the Order Paper and declare my interest as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)]

My Lords, the Government recognise the challenges that local authorities face in responding to the increased demand for temporary housing. Our priority is to support claimants and keep people in their homes. From April, we are investing £1.2 billion to increase the local housing allowance, benefiting 1.6 million claimants and helping to prevent homelessness. In England, our £1.2 billion investment in the local authority housing fund provides capital funding directly to councils to build new homes. Additionally, our £2 billion investment over three years tackles homelessness and rough sleeping.

[Baroness Thornhill (LD)]

I thank the noble Viscount for his Answer. What my Question was really getting at was whether there has been an assessment of the adequacy of what is being allocated. Is it enough and is it going to the right places? Stark evidence from the Local Government Association, London Councils and the District Councils’ Network would say that clearly it is not. A survey by the DCN, which was published just today, shows that housing benefit subsidy covers just 38% of district councils’ temporary accommodation costs. Can the Minister explain why the housing benefit subsidy for families and councils using temporary accommodation has been frozen since 2011, despite rising costs and dwindling supply? Does he agree that much has changed in that time, and it is time that the rate changed too?

[Viscount Younger of Leckie (Con)]

The subject that the noble Baroness has raised is to do with temporary housing, and we appreciate that these remain difficult times and that local authorities are subject to many pressures. We will continue to review the situation with housing benefit subsidy rates, but perhaps I can help the noble Baroness by saying that, following the Autumn Statement back in 2023, the Government announced additional funding of £120 million to help councils address in particular the Ukraine situation and homelessness pressures looking ahead to 2024-25. Today, I am pleased to say that it has been announced that England’s share of the £120 million is £109 million, which is to be paid via the homelessness prevention grant top-up for the year 2024-25.