Homelessness: Funding

Rachel Blake Excerpts

Tuesday 2nd December 2025 Westminster Hall

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mr Vickers. I thank the hon. Member for Harrow East (Bob Blackman) for securing this debate, and for his continued advocacy on this topic. He has been a reliable voice in this space for quite some time.

I am grateful for the opportunity to highlight the latest statistics, but today I will also make the case that tackling homelessness is the right thing to do not only for individuals and communities but for public spending and our economy. We have done so much already, but there is a lot more to do, so I will share with colleagues some details about the cost of temporary accommodation, particularly in London, and then propose some possible solutions and make some requests of the Minister.

Currently, 56% of homeless households living in temporary accommodation are in London. In fact, one in 50 Londoners live in temporary accommodation, which is nearly 200,000 people, including 97,000 children. London boroughs collectively spend £5 million a day on temporary accommodation, with the rate of temporary accommodation in Westminster reaching 3%. In 2023-24, Westminster city council spent £95 million on temporary accommodation, and in the same year spending on temporary accommodation in the City of London increased by 52%.

It is positive that there are plans to spend capital money on temporary accommodation, which is part of the solution, but we are now in a situation where the average household in London spends £202 every year, or 11% of their council tax bill, on temporary accommodation. The net current expenditure on homelessness in London has risen by 42% since last year, compared with a 16% increase across the rest of England. And of the 4,254 households in temporary accommodation in Westminster, 768 are in bed and breakfasts, which are an appalling place to grow up, and only 244 are in local authority or housing association stock.

The most expensive type of temporary accommodation is in the private rented sector and paid for nightly. It is the most common type in many London boroughs, including Westminster, where it is used for 1,684 of the 4,254 households in temporary accommodation. Local housing allowance has been frozen, and analysis by the Local Government Association shows that local authorities are due to spend an additional £400 million a year from their own funds on temporary accommodation. At present, 30 in every 1,000 households in the City of Westminster and seven in every 1,000 households in the City of London live in temporary accommodation.

This Government have done a lot. We have committed £39 billion to increase the supply of genuinely affordable housing, and my own local authorities have received significantly more money to tackle some of the worst forms of rough sleeping. I am grateful for all the work the Minister is doing, and for how open-minded and open-spirited she is about tackling this problem. All of us in this Chamber have come forward to solve some of these problems.

Will the Minister bring local government and housing associations together for an emergency meeting, to have a frank conversation about the ludicrous situation of local authorities driving up the cost of temporary accommodation because they are competing with each other to procure it? Will she update the House on the Office for Value for Money report on the cost of temporary accommodation? And will she consider using funding models that have been used in the past that help people to transition from leased temporary accommodation into permanent social housing?

These families live and have children growing up in London communities, and we simply cannot continue putting them out to other local authorities that I know have struggles with identifying temporary accommodation. I also know how seriously this Government take this issue, and I firmly believe that we will be able to end the scourge of rough sleeping and tackle the temporary accommodation crisis if we have the will and the spirit to get it done.