Councils' temporary housing costs to more than double by 2029-30, says LGA

"Since 2017-18, local authorities across England had spent almost 1.5bn more on temporary accommodation (TA) than had been reimbursed in housing benefit from the government. Without intervention, this figure is set to balloon to 3.9bn in the next four years, the LGA said as it urged the government to take action to help councils facing soaring demand and funding pressures."

"The TA subsidy gap was a problem that is getting worse each year. Because of this ever-widening issue, councils are caught in a vicious cycle of ever-increasing temporary accommodation costs versus static rates they receive back to cover their costs."

"Local authorities cover the cost of temporary accommodation, and the amount they can claim back from the Department for Work and Pensions (DWP) is capped at 90% of local housing allowance (LHA) rates set back in 2011. The LGA said the problem was increasingly getting worse as the demand for temporary accommodation rises and councils can claim back less."

England's local authorities face a severe temporary accommodation crisis, with costs projected to more than double to nearly 4 billion by 2029-30. Since 2017-18, councils have spent almost 1.5 billion more on temporary accommodation than reimbursed by government housing benefit. Annual costs are set to grow 65% over five years, from 360 million to 595 million. Over 130,000 households currently live in temporary accommodation, with 175,990 children at record levels. The funding gap widens because councils can only claim back 90% of local housing allowance rates frozen since 2011, creating a vicious cycle where rising demand meets static reimbursement rates.

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