Temporary Accommodation

Debate between Sojan Joseph and Josh Babarinde

Thursday 24th October 2024 Commons Chamber

[Josh Babarinde]

The hon. Lady has a crystal ball, because she has again pre-empted something I will say later. I absolutely agree, and I commend her work in her former role as Chair of the Public Accounts Committee, which I know took a deep interest in this matter.

Costs in Eastbourne have skyrocketed. In fact, the council has said that 49p of every £1 that the council collects in its share of council tax is currently spent on temporary accommodation. As a result, Eastbourne borough council has been forced to consult on incredibly tough saving decisions to avoid issuing a section 114 notice, and the picture is similar in other councils.

[Sojan Joseph (Ashford) (Lab)]

Does the hon. Gentleman agree that the decision by the last Conservative Government to freeze local housing allowance for temporary accommodation claimants at 2011 rates is causing increasing pressure on local authorities, such as mine in Ashford?

[Josh Babarinde]

There is a lot of clairvoyance and telepathy going on here, because I will also refer to that matter later. We absolutely need to consider what is going on with LHA rates, which have been frozen at the same level since 2011—a different era.

The Local Government Association said that local authorities in England have spent £2.29 billion on temporary accommodation—a 29% increase on the previous year, and 300% since 2015—and one in four councils say that they are likely to need emergency Government support to avoid a section 114 notice. So what are the solutions?

First and foremost, we must urgently improve conditions for families in temporary accommodation, such as Kelly’s. They should be entitled to essential facilities, and every effort must be made to prevent them from being displaced from their communities, support networks and the advice they need and deserve. Councils need emergency support to help them to avert imminent financial crisis. Eastbourne borough council leader Stephen Holt, who is also in the Public Gallery, led an emergency summit last year after which 118 other cross-party council leaders wrote to the previous Chancellor with proposals for emergency support. Those proposals fell on deaf ears, so I draw the Minister’s attention to that letter now. It includes proposals to uprate LHA rates with a view to updating them from their outdated 2011 levels.

We also need to address the appalling practice of people opportunistically renting private rented sector homes for the sole purpose of immediately sub-letting them to councils, at an inflated rate, so they can be used as temporary accommodation. That is contributing to the inflation. Beyond that, the Government must urgently publish a strategy to end homelessness in all its forms as soon as possible. That must involve building more homes, especially social housing.