Ellie Ames 28 February 2024

London boroughs spend £3m a day on temporary accommodation

London boroughs spend £3m a day on temporary accommodation image
Image: Pressmaster / Shutterstock.com

The cost of temporary accommodation in the capital ‘threatens to bankrupt boroughs’, London Councils has warned.

The cross-party group found London boroughs are spending £90m a month on temporary accommodation for homeless households – an almost 40% rise on last year.

If this spending rate continues, boroughs’ annual temporary accommodation bill will surpass £1bn.

London Councils is calling for additional funding in the Spring Budget and for ministers to lift the ‘unfair’ cap on housing benefit subsidy rates for temporary accommodation.

London Councils’ executive member for regeneration, housing and planning, Darren Rodwell, said: ‘London’s ballooning temporary accommodation bill is a critical danger to boroughs’ financial stability.

‘If things go on the way they are, it’s no exaggeration to say these enormous costs pose a bankruptcy risk.’

Today, the Government announced £220m funding for councils to prevent families from becoming homeless and provide support for people sleeping rough, including £38m for London boroughs.

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