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

To ask His Majesty's Government what proportion of the Homelessness Prevention Grant local authorities can use towards temporary accommodation costs, and if this is now capped, why.

£633.24 million in funding through the Homelessness Prevention Grant will be made available to local authorities in 2025/26 to support them to deliver services to prevent and respond to homelessness. This includes an uplift of £192.9 million compared to 2024/25.

Successive years of failure to invest in local preventative services has seen far too many homeless families forced into temporary accommodation. A new prevention ringfence for 2025/26 has been introduced to maintain prevention activities during this period. This will mean that LAs will have to spend 49% of their funding on prevention, relief and staffing activity and 51% on temporary accommodation.

These proportions are based on spend declarations submitted in 2023/24. We have published a regional analysis of spend declarations which is available at- Homelessness Prevention Grant 2025-26: technical note - GOV.UK