ON 18 September 2025, the UK Government released figures on Council spending on Temporary Accommodation, showing that Councils spending has increased by a quarter, to:- £2.8 billion, in:- 2024/2025.
Responding, Cllr Tom Hunt, Chair of the LGA’s Inclusive Growth Committee, said:- "These figures show how the temporary accommodation crisis facing Councils is only worsening. As more and more people turn to their Council for help, local authorities are having to stretch budgets further. Councils need changes to the way that the Government reimburse them for temporary accommodation costs. Current housing benefit reimbursement rules for temporary accommodation are outdated, Councils must pay landlords according to current market rates, whilst reimbursement for Councils is linked to 2011 rental rates. This needs to change and Government needs to act, specifically by making the rate the current rate, as opposed to 1 that's 15 years old, as well as restoring the Local Housing Allowance (LHA) rates to at least the 30th percentile of local rents beyond 2025-26. Furthermore, we need to ensure that we are building right types of homes in the places where they are needed with appropriate supporting infrastructure in place."
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