More than 164,000 children in England are currently living in temporary accommodation – the highest figure on record.
In a new report, the Commons’ Housing, Communities and Local Government Committee describes the situation as a crisis, with children living in “appalling conditions” to the detriment of their health and education.
Its report highlights the increasing strain on local authorities and the urgent need for reform.
Cllr Adam Hug, LGA Housing Spokesperson, said: “Every child and family deserve quality, stable accommodation, and councils strive to make sure that the necessary support is available.
“But the scale of the challenge facing local government on temporary accommodation and homelessness – and the financial pressures – are immense.
“Frozen temporary accommodation subsidy rates have left councils to pick up more than £700 million in temporary accommodation costs that they are unable to claim back from government.
“Government needs to use the upcoming Spending Review to ensure that councils are sufficiently resourced, including by urgently increasing the temporary accommodation subsidy.”
With councils facing increasing demand, while struggling with rising costs and limited housing stock, the LGA is also calling for the removal of ringfencing within the Homelessness Prevention Grant, the uprating of local housing allowance rates, and the introduction of a flexible, multi-year prevention funding model.
Under new rules, only 51 per cent of the £633 million Homelessness Prevention Grant can be used for temporary accommodation – leaving councils with a gap of £76 million in funds they need to find compared with last year.