Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 33
33
Acknowledged
Record levels of homelessness among families and children strain local authority finances
Conclusion
It is a source of national shame that cases of homelessness, particularly among families and children, are at record levels and continue to rise. This is placing considerable strain on the finances of local authorities. We repeat the findings of our report of earlier this year, England’s Homeless Children: The crisis in temporary accommodation. (Conclusion, Paragraph 120)
Government Response Summary
The government acknowledges the concern about rising homelessness and outlines specific actions, including allocating £1 billion for the Household Support Fund and Discretionary Housing Payments and £950 million for the Local Authority Housing Fund to increase temporary accommodation supply.
Government Response
Acknowledged
HM Government
Acknowledged
As the Government set out in our response to the Committee’s Report on Children’s Temporary Accommodation, when considering Local Housing Allowance (LHA) rates for 2025–26, the Government considered a range of factors, such as the rental market impact of LHA, including the impact on cross-government issues such as homelessness; and LHA rates increases in 2024. In the challenging fiscal context, at autumn Budget 2024 the Government prioritised investing £1 billion in funding for both the Household Support Fund (HSF) and Discretionary Housing Payments (DHPs) (including Barnett impacts) for 2025–26, maintaining DHP funding at the same levels in England and Wales. This allows councils to provide discretionary support to those most in need. The Government recognises that greater certainty helps local authorities to design and deliver sustainable plans for local welfare. Through the Spending Review, we have announced £842 million per annum (£1 billion including Barnett consequential) to reform crisis support. From 1 April 2026, the Government are introducing a new Crisis and Resilience Fund, incorporating Discretionary Housing Payments and funding to ensure the poorest children do not go hungry outside of term time. This is the first ever multi-year settlement for locally delivered crisis support. This longer-term funding approach aims to enable local authorities to provide preventative support to communities – working with the voluntary and community sector – as well as assisting people when faced with a financial crisis, to support the Government’s ambition to end mass dependence on emergency food parcels. The Department for Work and Pensions (DWP) continues to work closely with MHCLG to make sure that links between housing and benefit policy are considered. Any future decisions on LHA will be taken in the context of the Government’s missions; goals on housing; and which measures can best meet Government ambitions within the challenging fiscal context. The Spending Review announced £950m of capital for the fourth round of the Local Authority Housing Fund - the largest round of the fund to date, which will run until 2030 - to support local authorities in England increase the supply of better-quality temporary accommodation and drive down the use of Bed and Breakfasts for families with children. The fund will also provide safe and suitable housing for those on the Afghan Resettlement Programme and will provide local authorities with a lasting affordable housing asset for the future.