Rising levels of homelessness and the increasing cost of using expensive bed and breakfast accommodation have plunged more than two-thirds of all council homelessness services in England into the red, according to new analysis by the Local Government Association.
Figures compiled by the LGA show that nearly 7 in 10 council homelessness services are having to spend far more than they planned on homelessness support. Collectively councils overspent their homelessness budgets by 28 per cent – up from 16.5 per cent in 2015/16. Rising homelessness pressures have also led to:
- Councils housing more than 86,000 households in temporary accommodation, including over 127,000 children;
- Temporary accommodation placements by councils have risen by almost 80 per cent since December 2010; and
- An increase of more than 200 per cent in bed and breakfast accommodation being used over the same period.
The LGA, which represents councils in England and Wales, is warning homelessness services are being pushed to breaking point as a result of rising demand driven by a severe shortage of affordable social housing and huge gaps between rents and housing benefits, which is leaving housing unaffordable for low-income families.
Councils are being left with no choice but to place more and more families in temporary accommodation, including bed and breakfast hotels.
Latest figures show that council spending in England on placing families in B&Bs rose by more than a fifth in the last year alone, up from £93.3 million in 2017/18 to £114.9 million in 2018/19. There are 7,110 homeless households currently in bed and breakfast hotels – a 15-year high.
Analysis by the LGA shows that 69.3 per cent of councils responsible for housing in England (226 out of 326 councils) overspent their homelessness budgets. Councils planned to spend a total of £502.7 million in 2018/19, but overspent by a combined total of £140 million, almost a third more than budgeted.
The LGA is calling on the Government to use the next Budget to give councils the tools and powers they need to resume their historic role as major builders of good, quality affordable homes for social rent, and to invest in homelessness prevention to stop people from becoming homeless in the first place.
For this to happen, councils need to be able to keep 100 per cent of Right to Buy receipts to reinvest in new homes, and to be able to set Right to Buy discounts locally. It is also calling on the Government to protect families at risk of becoming homeless, by restoring local housing allowance rates to cover at least the lowest third of market rents.
Cllr David Renard, the LGA’s housing spokesman, said: “Homelessness is one of the most pressing issues facing councils and the Government. To reverse rising levels of homelessness, the Government needs to invest in homelessness prevention.
“We desperately need to be able to build more social housing to reduce the number of families being placed in temporary accommodation and bed and breakfasts. With adequate funding and powers, councils can boost efforts to prevent homelessness and get back to building the affordable homes the country needs.”
By Patrick Mooney, Editor