Councils’ temporary accommodation spend nears £900,000
Mendip District Council spent hundreds of thousands of pounds on housing homeless people in bed and breakfasts and hostels last year, new figures show.
Housing and homelessness charity Shelter said families are being pushed into homelessness and living in "awful" temporary accommodation across the country due to unaffordable rent and lack of social homes.
Department for Levelling Up, Housing and Communities figures show Mendip council spent a total of £860,000 on temporary homeless housing in the year to March, up from £744,000 the year before.
The reasons behind the rise in costs is partly down to more homelessness in some areas, but also due to the rising cost of accommodation itself.
The supply of privately rented accommodation is dropping, which is partly pushing up prices.
Some councils are also struggling to find places to put people up in, so they have to resort to more expensive shorter-term lets.
Hostels, which include refugees and emergency units, accounted for a significant amount of spending with £406K paid – 47% of the total expenditure for temporary accommodation last year.
A further £7,000 (1%) went towards housing people in bed and breakfasts in the area.
Last year's spending is also higher than the amount spent five years ago when £20,000 was put towards temporary homeless accommodation in the area – equating to a real-terms increase of 3,724%.
Across England, an estimated £1.6 billion was used by local authorities towards short-term accommodation for people facing homelessness in 2021-22 – up 5% from the previous year and a 62% real-terms increase from five years ago.
Of last years total expenditure, £407 million went towards bed and breakfasts and hostels. Spending on bed and breakfasts alone has increased 7% in real terms since 2016-17.
Polly Neate, chief executive of Shelter, said: "Homelessness is bad for the economy and it's even worse for the people whose lives it destroys.
"It defies all logic to shell out over £1.6 billion on grim B&Bs and grotty flats, instead of helping people to keep hold of their home in the first place."
Ms Neate added housing benefit – which assists unemployed people, low-income, or on other benefits to pay rent – has been frozen since 2020 "despite private rents rocketing".
She added: "This gaping hole in our country's safety net is throwing families needlessly into homelessness and trapping them in awful temporary accommodation because they can't afford private rentals and there are barely any social homes.
"Allowing homelessness to rise unchecked during the cost-of-living crisis, will only cost more in the long run."
She said housing benefits must be unfrozen so people can better pay rent and added the Government must build "truly affordable" social homes to end homelessness.
A Department for Levelling Up, Housing and Communities spokesperson said it is providing councils with £316 million this year to prevent homelessness.
They added: "Temporary accommodation is a last resort, but a vital lifeline for those at risk of sleeping rough.
"We know people are concerned about rising costs, which is why have announced the Energy Price Guarantee to support households with their energy bills over the winter, and a further £37 billion of support for those struggling with the cost of living."
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