Temporary accommodation expenditure has almost doubled since 2020/21
Local authorities in England spent a record £2.9bn on the provision of temporary accommodation and homelessness services from April 2025 to March 2026, according to the latest government statistics.
This figure is up 4% from the £2.8bn recorded the previous year and represents the equivalent of an £8m daily spend on these provisions.
Of last year’s expenditure, 65% was on private temporary accommodation including nightly paid self-contained accommodation, hostels and bed and breakfasts.
In the last five years, the total spent by councils on homelessness services has increased 88% from £1.6bn in 2021/21, reaching a total of £13bn.
Mairi MacRae, director of policy and campaigns at Shelter, said: “The government must use the Autumn Budget to get councils building again and prevent families from being wrenched from their communities and stuck in damaging temporary accommodation.
“It should remove the historic housing debt that is blocking councils from building social rent homes and immediately unfreeze housing benefit so families can afford a privately rented home in the meantime.”
Several sector bodies have urged the UK government to unfreeze housing benefits, including Crisis, the National Residential Landlords Association, and the Scottish government following news that local housing allowance rates would be frozen into 2026-27 rather than allowed to rise in step with local rents.
The figures on frontline service council spend follow last month’s revelation that a record 135,580 households are living in temporary accommodation.
Earlier this week, the Ministry of Housing, Communities and Local Government (MHCLG) confirmed a £91m fund for councils struggling to finance temporary accommodation, adult social care and other “expensive” services.
The cash will be distributed between 14 councils already in receipt of ‘exceptional financial support’ from the government. For example, in Haringey, North London, the council will be supported to buy more homes and help people move out of temporary accommodation.
Meanwhile, the National Audit Office has this week launched a probe into whether the government is overseeing a “resilient” temporary accommodation system that delivers value for money.
No comments yet