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Seven in 10 councils overspending homelessness budgets, warns LGA
Seven in 10 English councils are overspending their homelessness budgets as more families are placed in B&Bs, the Local Government Association (LGA) has said.
Analysis by the body said rising levels of people without a stable home are pushing homelessness services “to breaking point”.
Town halls budgeted £502.7m for homelessness in 2018/19, it found, but ended up spending £140m more.
Government figures show council spending on placing families in temporary B&B accommodation rose by more than a fifth in the past year alone, from £93.3m in 2017/18 to £114.9m in 2018/19.
There are currently 86,130 homeless households in temporary accommodation, with 7,110 of these in B&Bs – the highest level for 15 years and a 278% rise since December 2009.
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Inside Housing research revealed in 2018 that council spending on temporary accommodation was nearing £1bn annually, having risen 56% over five years.
The LGA said severe shortages of social housing and huge gaps between housing benefit levels and private rents are to blame for homelessness soaring.
It called on ministers to give councils resources to build social rented homes at scale and invest in homelessness prevention at next month’s Spring Budget.
The LGA also said Local Housing Allowance (LHA) rates – which determine how much housing benefit private renters can claim – should be restored to cover the lowest third of market rents.
The government announced earlier this month that a four-year freeze to LHA rates will end in April, but will only rise by £10 a month on average.
David Renard, housing spokesperson for the LGA and leader of Swindon Council, said: “Councils want to work with government to be able to prevent homelessness before it happens, but as a result of unprecedented funding pressures, they are becoming increasingly limited in what they can do.
“We desperately need to be able to build more social housing to reduce the number of families being placed in temporary accommodation and bed and breakfasts.”
Homes for Cathy Annual Conference
Inside Housing is pleased to join forces with Homes for Cathy to deliver the third edition of the Homes for Cathy Annual Conference, taking place on 23 March 2020 at the Congress Centre, London.
Supported by the Chartered Institute of Housing and Crisis, the conference will unite leaders and practitioners from housing associations, local authorities and charities to share real examples of the work being done to end homelessness. The event provides a platform for informed debate and discussion, examination and exploration around the good practices being used in the sector.
Homes for Cathy is a group of housing associations that were formed in the Cathy Come Home era. They came together in 2016 to mark the 50th anniversary of Cathy Come Home and to highlight the continuing needs of homeless people.
The Homes for Cathy group has been organising a range of local and national events over the past three years, with the aim of raising awareness of the needs of homeless people and working on strategies to end homelessness.
All surplus from the conference will go to the Homes for Cathy group to support its work bringing together housing associations, homelessness charities and local authorities to end homelessness.
