Temporary Accommodation: Finance

The Department for Work and Pensions (DWP) provides support through the social security system for rental costs as well as additional funding to local authorities. DWP provides support with rent and living costs to those who are eligible and living in temporary accommodation through Housing Benefit and Universal Credit. In 23/24, DWP spent £32bn on housing support.

For those who face a shortfall in meeting their housing costs and require additional support, Discretionary Housing Payments (DHP) DHPs can be used to help people with a rent deposit, rent in advance, a shortfall in rent or moving costs. This supports people to move out of and can be used to help prevent use of temporary accommodation. For 2025/26, DWP is maintaining DHP funding at £100m for England and Wales. This is in addition to funding local authorities receive from MHCLG, including for the Homelessness Prevention Grant.

DWP also provided funding of £742 million to extend the Household Support Fund in England by a further year, from 1 April 2025 until 31 March 2026. This will ensure low-income households can continue to access support towards the cost of essentials, such as food, energy and water.

We continue to work with MHCLG on the Long-Term Housing Strategy and the Inter-Ministerial Group on Homelessness and Rough Sleeping, supporting the development of a strategy to tackle the root causes of homelessness.