Homelessness: Housing
The question
To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential impact of homelessness accommodation providers' reliance on Housing Benefit as an income source on homelessness services.
Answered by Alison McGovern
The Department for Work and Pensions provides Housing Benefit subsidy to local authorities to help meet the cost of supporting households in temporary accommodation. In Great Britain, local authorities spent approximately £1.4 billion on Housing Benefit for temporary accommodation in 2024/25, of which around £980 million was subsidised. In addition, the Government is providing just over £3.6 billion in homelessness and rough sleeping funding to English local authorities between 2026/27 and 2028/29. The cross-government Homelessness Value for Money Review has identified pressures across the temporary accommodation and supported housing sectors, including rising costs, increasing demand, and provider sustainability. It is considering whether current funding arrangements support effective homelessness prevention, deliver good outcomes for service users, and provide long-term value for money for taxpayers. The review is expected to conclude in advance of Spending Review 2027.
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