Emergency Accommodation and Homelessness Summit

“the financial and social crisis caused by escalating homelessness and use of emergency accommodation threatens budgets across local government“

Councillor Sarah Doyle, Cabinet Member for Housing on Liverpool Council, reports on an emergency meeting on Temporary Accommodation and its dire financial impact on councils.

As councils across the country prepare to present options to councillors and communities ahead of setting budgets in 2024, a growing concern lies with the spiralling costs of temporary accommodation. In councils of all descriptions, the financial and social crisis caused by escalating homelessness and use of emergency accommodation, threatens budgets across local government. The emergency accommodation and homelessness summit, organised by Eastbourne Council, Local Government Association and District Council’s Network highlighted, amongst other things, that whilst there are many issues and policies that our respective authorities might differ on, we are all experiencing acute financial pressures created by unprecedented demand from homelessness. The latest data shows that councils are spending a combined total of £1.7 billion on temporary accommodation. Whilst this eye watering sum of money provides a stop gap during a crisis in people’s lives, ultimately, we know that temporary accommodation has a detrimental effect on mental and physical wellbeing.

The All Party Parliamentary Group on Households in Temporary Accommodation produced a report in January 2023 which stated

“Local authorities hold responsibility for carrying out day to day administration and delivery of homelessness services. However, they can only do so within the funding, policy and legislation parameters set by the Government.”

This report also identifies and supports the need for more social housing. The cost-of-living crisis, alongside government failure to address such things as outdated local housing allowance rates and tenant security, has resulted in rapid increases in homelessness.

These were some of the themes identified in the emergency summit, with attendees including council leaders, housing leads and officers. One speaker remarked that despite councils enforcing all preventive measures, there was still unmanageable demand. Ultimately, the levers available to us in local government to address the tsunami of need are extremely limited. We have a broken public housing system and a dysfunctional, imbalanced private rented sector, which has resulted in structural and systemic issues that local councils alone cannot properly address.

• increase Local Housing Allowance rates to at least the 30^th percentile;
• increase Discressionary Housing Payment to councils by £100 million for 2023/24 and a further £100 million in 2024/25;
• increase homelessness prevention grant by £150m, and
• review Housing Benefit subsidy rules.

The summit agreed to ramp up cross party calls for immediate provisions in the autumn statement to address the rising demand with temporary accommodation. Whilst extensive solutions are needed, such as long-term funding for social house building, ending right to buy and legislative changes around rent controls, the 276 attendees agreed to write to government to call on them to:In trying to tackle temporary accommodation overspends and improve the wellbeing and outcomes of people experiencing homelessness, we are up against over a decade of neglect and active de-prioritisation of clear and meaningful housing policy. It is important to acknowledge that this is not simply a housing issue. For those millions of people who find themselves experiencing homelessness, there are wide ranging impacts on health, educational attainment and community belonging. The current situation is a stark reminder of the disastrous effects of allowing and encouraging the financialisaton of what should be regulated, public provision.