New analysis by the Local Government Association shows that
councils are having to spend nearly 10 times as much
money on placing homeless households in bed and breakfasts
due to rising demand for support and a shortage of homes, as they
were a decade ago.
Councils only use bed and breakfasts as a last resort but
the continued loss of social housing is leaving many with no
alternative in which to house homeless families.
Latest figures show that councils in England were forced to
spend £93.3 million on bed and breakfast accommodation in 2017/18
– a huge increase on the £10.6 million spent in 2009/10.
There are currently 7,040 households in bed and breakfast
accommodation – up from 2,450 a decade ago.
The LGA says it is critical the Government uses the Queen’s
Speech on Monday to give councils the powers to get building more
affordable housing, replace homes being sold under Right to
Buy and long-term funding to reduce homelessness and prevent it
happening in the first place.
It is also calling on government to adapt welfare reforms
to protect families at risk of becoming homeless, by restoring
Local Housing Allowance rates to at least the
30th percentile of rents when the current freeze
ends in 2020.
The LHA determines the maximum level of support with
housing costs that is provided to households renting in the
private sector. The Government’s decision to freeze the rates in
2016, combined with the affordability crisis means that this is
often not sufficient. 97 per cent of areas in England are now
unaffordable for renters who are entitled to housing support.
Termination of a private rented sector tenancy is now one of the
biggest causes of homelessness.
Councils in England directly built 2,550 homes in 2018/19 -
the highest since 1992/93 – but the LGA warns this risks being
undermined by councils only being able to replace a quarter of
homes sold under Right to Buy.
Reform of the RTB is needed so that councils retain 100 per
cent of their receipts to reinvest in replacing homes accompanied
with the right infrastructure, and can set discounts locally.
This is the only way to ensure it works for future
generations.
The LGA’s housing spokesman, Cllr David Renard,
said:
“It is a tragedy when anyone becomes homeless and the last
thing councils want to be doing is placing people in bed and
breakfast accommodation.
“This analysis shows that sadly many councils are
exhausting all their options and are having little choice but to
use B&Bs more and more.
“Not only is this far from ideal for families, it is very
expensive for councils, who are already under significant
financial pressures. Councils would much rather use these scarce
resources to build more affordable homes and prevent people from
becoming homeless in the first
place.
“We now need government to act and use the Queen’s Speech
to kick-start the genuine renaissance in council house
building needed to reduce homelessness and solve our national
housing crisis.”
NOTES TO EDITORS
1. As part of its #CouncilsCan campaign, the LGA has set
out radical plans for how the Queen’s Speech on October 14 can be
used by the Prime Minister to reignite the devolution process to
ensure all parts of England reap the benefits of having greater
powers and funding to improve services such as housing,
transport, and health and social care - https://www.local.gov.uk/about/news/lga-sets-out-queens-speech-seven-point-plan-boost-public-services
2. Statutory Homelessness, January to March (Q1) 2019:
England https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/831246/Statutory_Homelessness_Statistical_Release_Jan_to_March_2019.pdf
3. Number of households in temporary accommodation and bed
and breakfasts https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/764357/TA_Tables.xlsx
4. Council expenditure on bed and breakfasts
2017/18 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787869/RO4_2017-18_data_by_LA_-_revised.xlsx
2009/10 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/387067/RO4.xls
5. LGA LHA briefing https://www.local.gov.uk/parliament/briefings-and-responses/local-housing-allowance-and-homelessness-house-commons-24-july
6. Crisis and Chartered Institute of Housing research on
Local Housing Allowance, which shows that 97 per cent of areas in
England are now unaffordable for single people, couples and small
families reliant on LHA https://www.crisis.org.uk/media/240377/cover_the_cost_2019.pdf
7. Latest house-building stats https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/835887/House_Building_Release_June_2019.pdf
