Recommendation 25

The rules that determine the amount of money councils can claim through the Housing Benefit subsidy system is restricting their ability to source good-quality temporary accommodation for households. The Department for Work and Pension’s ongoing freeze of the subsidy rates is putting an enormous financial strain on councils. The freeze in subsidy rates limits the range of affordable options available to councils and acts as a disincentive 65 for them to enter longer-term leases that could strengthen their ability to raise standards, due to the risk of being exposed to large costs on their general funds. Within a financially constrained environment, we are also concerned that the rates reimbursed for different types of accommodation create an incentive for councils to place households in accommodation with support they may not need. (Conclusion, Paragraph 81)