Committee’s report has been welcomed by the Chartered Institute of Housing
The pressure of homelessness is placing “unsustainable pressure” on local authorities’ finances, according to the public accounts committee (PAC).
In a report published today, the committee found that of the estimated £2.1bn spent by local authorities in 2023-24 on temporary accommodation, a large proportion was used to meet the urgent need rather than used for preventative measures.
Geoffrey Clifton-Brown, chair of the committee, said: “My committee is deeply concerned by the number of people currently being housed in substandard, overpriced and at times, wholly inappropriate accommodation, sometimes a long way from their previous home.
“A lack of affordable housing, a focus on short-term solutions and no clear strategy to tackle this issue have left us with thousands of families in deeply troubling circumstances.
“Worryingly there seems to be no desire to move away from an unsatisfactory short-term system, leaving local authorities attempting to save a sinking ship with a little more than a leaky bucket.
He called for a clear strategy and stronger support for local authorities in England, to match the national strategies that already exist in the devolved nations.
“Local authorities find themselves at breaking point as they haemorrhage funds to cover the rising costs of housing families in temporary accommodation,” Clifton-Brown added.
“We are calling for an overarching strategy that addresses the need for better connectivity across Government departments to tackle the root causes of this crisis.
“Without one, we fear this will remain an issue into which money is simply poured, without effectively tackling the blight of homelessness.”
The PAC also argued for an exemption from requirements on local connections or residency for all veterans, care leavers under 25 years, and victims of domestic abuse, and an end to competition between local authorities and the Home Office for temporary accommodation.
The report raises concerns around the 39,000 families being housed outside their local area and the 6,000 homeless families with children living in B&Bs due to the lack of alternative accommodation.
The report was welcomed by Rachael Williamson, interim director of policy, communications and external affairs, at the Chartered Institute of Housing.
“We strongly support the call for increased investment in social rented homes, better oversight of supported housing, and aligning Local Housing Allowance rates with market rents to prevent homelessness,” she said, urging the government to “act decisively to tackle the systemic issues driving this crisis and provide long-term solutions that offer security and stability for all”.
She suggested that the upcoming Spending Review would provide an opportunity to address the issue.
Clare Miller, chief executive at Clarion Housing Group, said: “With temporary accommodation costs crippling councils and the tragedy of children left growing up in B&Bs, the case for significant investment into social housing has never been starker.
“While Clarion has a pipeline of 20,000 safe, secure homes that could be accelerated, to do this we need the financial stability of a 10-year rent settlement and further direct grant funding from government.
“We look forward to hearing more on these in the Spending Review and continuing to work with this government to deliver the homes the country desperately needs.”
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