Rising numbers of people who are homeless are being placed in bed
and breakfasts due to a severe shortage of housing meaning
councils are being forced to spend over five times as much money
on accommodation as they were a decade ago, new analysis by the
Local Government Association reveals today.
Latest figures show that councils in England spent £142
million placing homeless households in bed and breakfasts in
2019/20, compared with £26.7 million in 2010/11 – a 430 per cent
increase.
Currently, there are 10,510 households in bed and
breakfasts, according to provisional data, compared with 2,310 a
decade ago – more than a 350 per cent increase.
Ahead of this week’s LGA’s Virtual Annual Conference which
will see over 1,600 council leaders and officials join together
to discuss the most pressing issues facing our country, councils
say this underlines the desperate need to build more social
housing.
During the coronavirus crisis, central and local government
have shown what can be achieved when they work together towards a
shared goal with councils demonstrating their ability to lead and
deliver on the most pressing issues facing residents right across
the nation. As we recover from the pandemic, the LGA wants to
work even more closely with government to tackle the current
housing shortage and is calling for councils to be given further
powers and resources to build 100,000 social homes for rent each
year.
With previous LGA analysis showing council housing waiting
lists could double as a result of the pandemic, giving councils
these new powers would help the Government to meet a third of its
annual housing target and reduce homelessness. By reforming Right
to Buy so that councils can retain 100 per cent of receipts, have
flexibility to combine Right to Buy receipts with other
government grants and be able to set the size of discounts
locally, councils could go even further.
The LGA says these measures would enable councils to
significantly boost the number of new homes built, supported by
the right infrastructure.
Polling by the LGA has also found that 80 per cent of MPs
and 88 per cent of Peers think councils should have more
financial freedoms and powers to build new homes.
Cllr David Renard, LGA housing spokesperson, said:
“Sadly, these figures reflect the scale of the housing
challenges that our country faces. Councils will only use bed and
breakfasts as a last resort, but the severe lack of suitable
housing means they now have no choice.
“This is hugely disruptive to families with children, and
the rising demand for support has come with soaring costs for
councils.
“Throughout the pandemic government has trusted councils to
get on with the job of protecting the nation, supporting people
and putting infrastructures in place to help with recovery. We
want to continue this momentum and work with government to tackle
the shortage of housing and build the homes the country
desperately needs.
“With the right funding and freedoms, councils can help
government achieve its ambitions for our national recovery from
the pandemic. Giving councils the powers to build council housing
on the scale required, would go a significant way towards
reducing homelessness and the need to place households in bed and
breakfasts.”
Notes to editors
The LGA has set out a six-point plan to help prevent and
reduce homelessness.
-
Bringing forward the Government’s pledge to end ‘no fault
evictions’, which will prevent more households from becoming
homeless
-
Improved protection through the welfare system, including
maintaining the £20 per week increase in Universal Credit, due
to end in September 2021 and maintaining Local Housing
Allowance rates at the lowest third of market rents
-
An immediate review of the impact of the overall benefits
cap in the context of the pandemic
-
Ensuring that councils have enough resources to support
households at risk of homelessness – this includes restoration
of local welfare funding to at least £250 million a year and a
review of the Discretionary Housing Payment scheme, so that
councils can continue to play a vital role in alleviating
financial hardship
-
Powers for councils to acquire empty homes, including
making it easier to use Compulsory Purchase Order powers to buy
properties and help move households on from temporary
accommodation
-
Setting out plans to deliver a step-change in social
housing – the LGA is calling for 100,000 social homes for rent
to be delivered every year
Latest provisional data shows there are 10,510 households
in B&B as of Q4 2020, compared to 2,310 in Q4 2010
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/979428/StatHomeless_202012.ods
Councils spending on bed and breakfasts £142,141,000 in
2019/20
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/992912/RO4_2019-20_data_by_LA.ods
£26,719,000 in 2010/11
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/16450/Revenue_Outturn__RO4__data_2010-11_by_LA_-_27-Nov-2012-v2.xls
