Record homelessness levels are placing unsustainable pressure on local authorities, the Commons’ Public Accounts Committee has warned.
In 2023/24, councils spent £2.1 billion on temporary accommodation, diverting funds from much-needed preventative measures, the committee found. Despite similar strategies in devolved nations, England lacks a national homelessness plan, worsening the crisis.
The report highlights that 6,000 families with children are living in B&Bs, with 39,000 households placed outside their local areas, disrupting lives.
The shortage of affordable housing, rising local housing allowance shortfalls, and poor oversight of the rental sector are key drivers of the crisis.
Cllr Adam Hug, LGA Housing Spokesperson, said: “Homelessness is one of the biggest and most urgent pressures facing local government.
“As this report highlights, as more people turn to their council for support, and councils have little choice but to resort to costly temporary accommodation, local authorities are spending less on funding homelessness prevention.
“There also needs to be a genuine cross-departmental approach to tackling this crisis, as part of a long-term government strategy, with councils given the powers and resources needed to address the national shortage of affordable housing.”