Select committee: Public Accounts Committee
Recommendation 24
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 ↗
Recommendation (the committee's words)
DWP explained that it sets the subsidy level using a rate that has never covered local authorities’ full costs, to incentivise them in their procurement of temporary accommodation. MHCLG added that it considers local authorities’ financial position with regard to the temporary accommodation subsidy when making decisions about the local government funding settlement, but it did not explain in any further detail how it does this.33 30 TH0006 31 TH0022 32 C&AG’s Report, paras 3.12, 3.13 33 Qq 38, 74 15 2 Strategic issues for government departments Cross-government approach
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".