Commenting on new research from the charity Shelter into homelessness levels, London Councils says “vast numbers” of families in the capital will spend Christmas in temporary accommodation and “urgent action” is needed to turn the crisis around.
Shelter’s analysis suggests 354,016 are likely to be homeless in England on any given night. This equates to one in 160 people in England being homeless – the majority in temporary accommodation, while others sleep rough or ‘sofa surf’.
London Councils highlights that the capital is experiencing the most severe homelessness pressures in the country. The cross-party group estimates that 183,000 Londoners live in temporary accommodation – equivalent to over one in 50. This is the highest level of homelessness ever recorded in the capital.
London Councils’ figure includes almost 90,000 children. From this, London Councils estimates there is on average at least one homeless child in every London classroom.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said:
“London is the epicentre of a national homelessness emergency, with vast numbers of families set to spend Christmas in temporary accommodation.
“The impact of homelessness on individuals – especially children – is devastating and the pressures on local services are unsustainable. We need urgent action to turn the crisis around.”
In October London Councils published analysis showing that boroughs collectively spent £4m every day on temporary accommodation for homeless Londoners in 2023-24. London boroughs’ spending on temporary accommodation had jumped by a dramatic 68% in a single year.
London Councils’ priorities for national policy action include:
Double Homelessness Prevention Grant funding. Local authorities play a vital role in supporting struggling households to avoid homelessness. Councils require an emergency funding increase to ensure local services have the resources needed in the face of rising levels of demand for support.
The level of overspend on borough budgets suggests a doubling of current levels of Homelessness Prevention Grant funding is necessary. London boroughs received £157m from the government through this grant in 2024-25.
Make the increase in Local Housing Allowance rates a permanent measure. Research recently published by London Councils shows only 5% of London’s private rental listings in the capital are affordable to households relying on Local Housing Allowance.
Boroughs are calling for the increase in LHA rates to become a permanent measure, with LHA rates updated annually to track market rents and help ensure adequate support for low-income tenants in the private rented sector.
Remove the January 2011 cap on Local Housing Allowance payable for temporary accommodation in Housing Benefit subsidy. This is the amount of money local authorities can claim from the government for their temporary accommodation costs.
Currently the subsidy has been frozen at 2011 rates – even though temporary accommodation has become significantly more expensive over the past 13 years. London Councils’ data from 24 boroughs shows a gap of more than £96m in 2023-24 between the cost of providing temporary accommodation and what councils can recover from government through the housing benefit subsidy for temporary accommodation.
The ‘subsidy gap’ is a priority concern for London boroughs, especially as they increasingly rely on relatively high-cost temporary accommodation options in B&Bs and commercial hotels. Lifting the cap would better reimburse boroughs for their temporary accommodation costs.