Image © Richard Johnson/Shuttestock
A new report from the National Audit Office found that homelessness is at its highest level since comparable data collection began in the early 2000s, driven by lack of available housing for social rent and welfare reforms such as the capping and freezing of the Local Housing Allowance.
Local authority spending on homelessness services has more than doubled since 2010-11 to £2.44bn, with councils spending over £1.6bn on temporary accommodation alone, the watchdog said.
However, central government funding arrangements for homelessness services were “complex, fragmented and sometimes uncertain”, making it difficult to plan provision.
Funding had also failed to keep pace with the rising cost of temporary accommodation, with district councils – some of whom are spending up to half their total net budgets on temporary housing – particularly hard hit.
“Some local authorities told us that meeting their statutory duty could result in them issuing a Section 114 notice, meaning they believe they will exceed their resources in a financial year,” it said.
Exceptional financial support of £6m was recently allocated to Eastbourne Borough Council in response to rising levels of homelessness within the district and the spiralling cost of temporary accommodation.
In London, where the use of temporary accommodation is particularly high, borough leaders said the report demonstrated an “urgent need” for a new approach to tackling homelessness.
According to an estimate by London Councils, one in 50 of the capital’s residents – including one in 23 children – are currently homeless and living in temporary accommodation.
But Grace Williams, the body’s executive member for housing and regeneration, said homelessness was not inevitable.
“As this report clearly demonstrates, government policy could be far more effective in tackling homelessness and getting to grips with its underlying causes,” she said.
“Better co-ordination across government departments, greater housing security, sufficient funding for councils, and more investment in building affordable homes are key to turning the situation around.”
John Glenton, executive director of care and support at social housing provider Riverside, said the fact that less than a fifth of local authorities’ homelessness budgets was being spent on prevention was a root cause of the problem.
He cited a homelessness prevention scheme at Sefton Council which had seen families placed in social housing with a dedicated support worker, saving the authority 75% of the cost of deploying temporary accommodation.
“More money needs to be invested in homelessness prevention because the evidence proves it works – it delivers better outcomes for families and saves councils money,” he said.
“By comparison, putting families in temporary accommodation is creating a humanitarian crisis behind closed doors and a financial crisis in town halls and city halls across England.”
The Ministry of Housing, Communities and Local Government welcomed the NAO’s report, saying its recommendations would be considered as the Government developed its homelessness strategy.
“Homelessness levels have sky-rocketed and too many families are living in temporary accommodation,” said a spokesperson.
“We will take the action needed to tackle this issue and develop a long-term, cross-government strategy working with mayors and councils to put Britain back on track to ending homelessness.”
