Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact of the cap on the amount councils can claim to meet temporary accommodation costs on local authority finances.

We continue to keep the rates used for Housing Benefit subsidy under review and are working closely with MHCLG and the Inter-Ministerial Group on Homelessness and Rough Sleeping to explore the impacts of subsidy rates on local authorities.

Any future decisions on subsidy rates will be taken in the context of the Government’s missions, goals on housing and the current challenging financial environment at the appropriate fiscal event.

We recognise the financial pressures which local authorities are experiencing. MHCLG is increasing funding for homelessness services this year by an extra £233 million compared to last year (2024/25).