The Temporary Accommodation crisis – Liverpool

Sarah Doyle, Cabinet Member for housing in Liverpool, recently reported on the emergency meeting on Temporary Accommodation in Eastbourne. Councils are warning that the rising cost of temporary accommodation is pushing some councils to the financial brink. For instance, Hastings council recently warned that the cost of temporary accommodation was a major factor in the threat of them having to issue a section 114 notice (indicating they would not be able to balance their budget). The Local Government Association has called for an end to the freeze of Local Housing Allowance and an increase to the 30^th percentile (i.e. it will cover the rent of the cheapest 30% of properties). Councils have to cover the gap between LHA and the actual cost. Here is the example of Liverpool council. As you can see there is a substantial shortfall for all types of accommodation.

Bedroom rate	LHA per week	LHA per month	Private rent median	Shortfall
Shared accommodation	£65.25	£283.53	£412.00	£128.47
1 Bedroom	£92.05	£399.88	£550.00	£150.12
2 Bedroom	£108.16	£469.96	£650.00	£180.04
3 Bedroom	£120.82	£524.99	£700.00	£175.01
4 Bedroom	£156.00	£677.86	£950.00	£272.14

Temporary Accommodation expenditure for Liverpool is projected to rise to £26 million by the end of 2023/4 if no government action is taken. This covers the cost of hotels, bed and breakfast and some private sector short-term housing arrangements. B&B expenditure is now forecast to be £13.7 million by the end of the 2023/24 financial year.

Sarah writes:

“Liverpool Council are working closely with Registered Providers to bring vacant stock back into use but this is challenging with a lack of resource and capacity. Government intervention in terms of increasing LHA rates, ending section 21 and directing extra funding to councils would mean councils can properly tackle rising homelessness.

The government Discretionary Housing Payment allowance for Liverpool is £1.17 million for 2023/24. Liverpool has continually topped up this amount over the years, with the council contributing £1 million this year. This is challenging for cash strapped council budgets. Although DHP is meant to help tenants out who are in financial difficulties, it can play an important role in homelessness prevention.

Currently six hundred households are in temporary accommodation. The council also has challenges with the Home Office streamlined decision process which is likely to lead to around 400 refugess requiring accommodation in the city. The Home Office and SERCO have only agreed to give 7 days notice of eviction which threatens a refugee homelessness crisis. The council has had to create 25 communal spaces in the city to ensure that people are kept off the street and safe.”

Liverpool council has been taken over by government commissioners. It has no council housing owing to transfer of its stock to housing associations.