Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of the freeze in temporary accommodation subsidy rates since 2011 on (a) local authority budgets and (b) the financial sustainability of homelessness services.

The Department for Work and Pensions pays local authorities a Housing Benefit subsidy for Temporary Accommodation cases. There are restrictions on the amount paid, including a subsidy cap which is the lowest of £500 per week in certain areas of London or £375 elsewhere, 90% of 2011 LHA rates, or the claimant’s Housing Benefit entitlement. This incentivises local authorities to ensure Temporary Accommodation is good value for money.

We recognise the financial pressures which local authorities are experiencing. This Government has invested £1bn in homelessness and rough sleeping services this year (2025/26), a £233m increase on the previous year.

We want to encourage better investment into Temporary Accommodation stock up-front to minimise costs to local authorities and £950m was announced in the latest round of the Local Authority Housing Fund. This coupled with measures to strengthen local authorities’ financial position such as a new £39 billion Affordable Homes Programme and a 10-year rental settlement at Consumer Price Index + 1, will support local authorities in England to increase the supply of good quality Temporary Accommodation and drive down the use of costly bed and breakfasts and hotels.

We continue to work with the Ministry of Housing, Communities and Local Government as part of the Homelessness and Rough Sleeping Inter Ministerial Group.