District council leaders have called on the Chancellor to increase the amount local authorities can claim for temporary accommodation.
The Housing Benefit subsidy rate is currently tied to 2011 rates. This means that district councils can only claim an average of £109 a week for nightly accommodation.
District Councils’ Network chairman Cllr Sam Chapman-Allen has written to Jeremy Hunt urging him to use the spring budget to increase the subsidy cap to 90% of market rent.
‘Some district councils now spend millions of pounds a year on temporary accommodation. In some cases, this is between 20% and 50% of their total net budget,’ he told the Chancellor.
‘The spiralling increase in demand and cost means that well-run councils are now struggling to balance the books. It is threatening to push councils into financial distress.
