Select committee: Public Accounts Committee
Recommendation 29
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)
In May 2024, we reported our concern at the Home Office failing to engage effectively with local authorities about the impact on local areas of its efforts to house asylum seekers.40 In discussing homelessness, we asked MHCLG what was being done to stop situations where local authorities are looking for a hotel to house homeless households, but they are outbid by the Home Office. MHCLG accepted that, in the past, the quality of co-ordination between the Home Office and local government had fallen short of what it should be. It stated that work was ongoing to improve that coordination and a new locally-led approach was being developed which aimed to reduce competition. For example, the Home Office had decided not to use accommodation in a particular area if local government was already using it. But MHCLG also emphasised that this is a situation where there are two conflicting sets of statutory duties: local government housing people to whom it owes a homelessness duty; and the Home Office accommodating asylum seekers who would otherwise be destitute, towards whom it also has a duty. It suggested that, where there is a scarcity of accommodation, some issues are inevitable.41 A week later we took evidence from the Home Office about its accommodation arrangements for asylum seekers. We raised again the issue of it competing for accommodation with the local authority, and driving up rents. The Home Office told us that one purpose of its joint work with MHCLG was to avoid the issue of it paying higher rates than the 38 Qq 44, 45, 47-50 39 Qq 51, 57, 75; C&AG’s Report, paras 3.7, 3.8 and Figure 8 40 Committee of Public Accounts, Asylum Accommodation and UK-Rwanda partnership, Thirty-Fourth Report of Session 2023–24, HC 639, 29 May 2024 41 Q 46 17 local authority in an area with small amounts of rental accommodation, and driving up rents as result. The Home Office said it now had a commitment “that if we ever hear that a local authority is seeking to acquire a particular p
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".