Select committee: Public Accounts Committee
Conclusion 20
4th Report - Tackling homelessness
Published 24 Jan 2025
Addressed to HM Treasury
Public Accounts Committee Tackling homelessness All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The LHA sets the maximum amount of housing support that claimants of housing benefit and universal credit can usually receive, to help with housing costs in the private rented sector.26 Since 2011, DWP has introduced welfare reforms designed to reduce overall welfare spending and incentivise benefit recipients to take up employment. These reforms, including periodically capping and freezing LHA rates, have reduced the income that households can derive from benefits in real terms. At the same time, rents in the private rented sector have increased faster than wage growth and LHA rates in much of the country.27 DWP acknowledged that 45% of households now face a shortfall between the LHA they receive and the rent they pay.28
From: Public Accounts Committee, 4th Report - Tackling homelessness (HC 352), 24 January 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Fourth Report of Session 2024-26
The government responded to the whole report on 4 June 2026.
Treasury minutes: Government response to the Committee of Public Accounts on the Fourth report from Session 2024-25
Published 6 May 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it agrees with the Committee's recommendations on tackling homelessness, giving target implementation dates ranging from April 2025 to Summer 2026 and noting that some are already implemented.
- On temporary accommodation, the government agrees with the recommendation and reports it as implemented: the Emergency Accommodation Reduction Pilots, backed by £5 million (later £8 million in total), work with 20 local authorities with the highest use of B&B accommodation.
- On consolidating funding, MHCLG will merge its main rough sleeping and single homelessness grants into a single grant for 2025-26, and will "explore options" for aligning Homelessness Prevention Grant funding with rough sleeping funding. It will "consider whether and how" to consolidate homelessness grants into the Local Government Finance Settlement.
- On local connection tests, regulations in force since 18 December 2024 exempt all former regular armed forces members. MHCLG will bring forward changes for domestic abuse victims and care leavers under 25 "in due course".
- On supported housing, the government agrees, with a target date of Summer 2026. A 12-week consultation published on 20 February 2025 covers a licensing regime and National Supported Housing Standards, with a response to follow "as soon as possible".