Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of the impact on local authority homelessness and temporary accommodation costs of reducing Homes for Ukraine payments from 1 January 2027 and how many hosting arrangements they expect to end as a result; and whether councils will receive additional funding for any resulting increase in homelessness.

The Government considered the available evidence on homelessness, sponsorship sustainability, local authority impacts and affordability when deciding the future funding arrangements for Homes for Ukraine.

The scheme has evolved from an emergency response into an established programme, with the announced changes ensuring the scheme remains sustainable. Thank you payments will continue to be paid as a gesture of appreciation for those opening their homes - this does not represent a rent payment or a long-term funding arrangement. From 1 January 2027, thank you payments will be £100 per household each month. Sponsors and hosts may ask adult guests to contribute reasonably towards household expenses or consider a formal rental arrangement.

The local authority tariff will also reduce from £5,900 to £3,300 from 1 January but will remain un-ringfenced and can support rematching and homelessness prevention.

Current available data indicates that most Ukrainian households at risk of homelessness have had that risk prevented or relieved. Local authorities can continue to use the un-ringfenced Homes for Ukraine tariff flexibly to support rematching, homelessness prevention and sustainable housing options. The Department will continue to monitor homelessness data and work with local authorities.