Councils’ temporary housing costs to more than double by 2029-30, says LGA
The Local Government Association (LGA) projects that the cost of temporary accommodation for homeless individuals in England will exceed £4 billion by 2029-30, urging government intervention to address rising financial pressures on councils.
The Local Government Association (LGA) has reported a concerning forecast regarding the cost of temporary accommodation for homeless individuals across England, predicting a dramatic increase to nearly £4 billion by the fiscal year 2029-30. This projection reveals that local councils have already spent approximately £1.5 billion more on temporary accommodation than they have been reimbursed through housing benefit since the 2017-18 period. The LGA stressed the urgent need for government intervention to assist councils that are grappling with soaring demand for services amid shrinking financial support. Furthermore, the LGA's findings indicate that annual costs attributed to temporary accommodation will rise by 65% over the next five years, increasing from nearly £360 million to £595 million. This steep rise underscores the growing crisis of homelessness in England, with councils facing an uphill battle to manage resources efficiently while meeting the needs of vulnerable populations. Tom Hunt, who chairs the LGA's inclusive growth committee and leads Sheffield city council, voiced concerns that the widening gap in funding for temporary accommodation presents an increasingly daunting challenge for local governments. As local authorities contend with this issue, the implications of unchecked housing costs are significant. Without concerted action from the government, the financial strain on councils could lead to a deterioration of homeless services and negative consequences for the welfare of many individuals who rely on these essential provisions. The LGA has called on the government to prioritize funding solutions and support systems to alleviate this pressing financial burden and help prevent worse outcomes for the most disadvantaged members of society.