Increasing numbers of families are turning to councils for
temporary accommodation as homelessness reaches record highs, the
Local Government Association warns.
Analysis from the LGA, which represent councils across England,
reveals that the number of households living in temporary
accommodation has risen by 89 per cent over the past decade to
104,000 households at the end of March 2023 – the highest figures
since records began in 1998 – costing councils at least £1.74
billion in 2022/23.
The severe shortage of social housing means councils are being
forced to pay to house people in private temporary accommodation,
including hotels and B&Bs while they wait for a permanent
home. Dwindling supply is further compounded by the rising cost
of living and frozen Local Housing Allowance (LHA) rates which
are driving increases in homelessness and reducing councils’
ability to source suitable accommodation.
The LGA is calling on the Government to use the upcoming Autumn
Statement to:
- restore LHA rates to cover the bottom 30th percentile of
local rents
- further reform Right to Buy which includes allowing councils
to retain 100 per cent of receipts on a permanent basis;
flexibility to combine Right to Buy receipts with other
government grants; the ability to set the size of discounts
locally; and the ability to recycle a greater proportion of
receipts into building replacement homes.
- provide a long-term rent deal for council landlords to allow
a longer period of annual rent increases for a minimum period of
at least 10 years, providing certainty for investment
- provide long-term funding certainty for local government to
help councils scale up to deliver an ambitious build programme of
100,000 high-quality, climate-friendly social homes a year
Councillor , Housing spokesperson for
the Local Government Association, said:
“Councils are under mounting pressure to find suitable homes for
an ever-increasing number of people and are doing the best they
can under current circumstances.
“A plethora of issues has meant that council budgets are being
squeezed and the chronic shortage of suitable housing across the
country means that councils are increasingly having to turn to
alternative options for accommodation at a significant
cost.
“Councils need to be given the powers and resources to build
enough social homes for their residents so they can create a more
prosperous place to live, with healthier and happier
communities.”
Asylum and resettlement schemes are also adding to supply and
demand issues. Current programmes involving the increased pace
and scale of asylum decisions, closure of hotels for Afghan
households and new arrivals from Afghanistan over the next few
weeks are now running in parallel with winter pressures, combined
with ongoing support for homeless Ukrainian and Afghan
households.
The clearance of the asylum backlog in particular means
increasing risks around destitution and rough sleeping
numbers.
Cllr Rodwell, continued:
“Councils have a proud history of supporting humanitarian efforts
and continue to work hard to protect and support refugees and
help deliver a wide range of government asylum and resettlement
schemes.
“However, combined pressures from these many schemes are growing
on councils and there continues to be a crisis across the refugee
and asylum system. This is being compounded by a housing crisis,
the pace and scale of asylum decision making and the rapidly
approaching deadline for all remaining Afghan families to move on
from hotels by the end of the year.”
Ends
Notes to Editors
-
The LGA’s Autumn
Statement submission warns that councils in England face a
funding gap of £4 billion over the next two years. In its
submission to the Chancellor, the LGA said the Government needs
to provide immediate funding so councils can deliver the
2023/24 budgets they set this year and ensure that councils
have sufficient resources to set balanced budgets next year
without having to make drastic cuts to services.
It is accompanied by appendices on key areas of council activity
that are experiencing sharp financial and/or demand pressures
(adult social care, children’s services and housing and
homelessness support).
2. The LGA is calling for the Government to go further and faster
in order for councils to be able to properly resume their
historic role as a major builder of affordable homes by
implementing a six-point plan for social
housing.
