Shelter says “skyrocketing rents” and the government’s freeze on housing allowance lie behind the increased spend on temporary accommodation for homeless households.
The government has released new figures on local council spending on temporary accommodation, which show that English authorities spent £1.7 billion on temporary accommodation for homeless households between April 2022 and March 2023.
This is a nine per cent increase in spending in just one year. It has increased by 62 per cent in the last five years.
One third of the total was spent on emergency B&Bs and hostels – £565 million – which are often considered the worst accommodation for families with children to live in.
Polly Neate, chief executive of Shelter, says: “Not only is £1.7 billion spent on temporary accommodation outrageous, but it’s also illogical. We simply can’t keep throwing money at grim B&Bs and hostels instead of focusing on helping families into a home. With a general election on the horizon, no one can afford to continue to ignore a crisis of this magnitude.
“Housing benefit should cover the bottom third of local rents but the government has kept it frozen since 2020 while private rents have skyrocketed. This decision combined with the decades of failure to build enough social homes has meant that families can’t find anywhere affordable to live and as a result are forced into homelessness in cramped and unsuitable temporary accommodation, often miles away from their children’s schools and support networks.
“As an immediate solution, it’s vital the government uses the Autumn Statement to unfreeze housing benefit so it does what it’s meant to do: stop people on low incomes from becoming homeless. However, the only lasting solution to the housing emergency is to invest in genuinely affordable social homes with rents tied to local incomes.”
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I'm surprised it's only a 9% increase in spending over a year. Especially as inflation was higher than that. I guess it's a real terms spending cut if that is the case.
Private rents haven't skyrocketed anywhere near as much as mortgages and can only increase once of year. Tenants can claim LHA to cover at least some of their rent if they are on a low income whereas homeowners get no help at all with their housing costs.
The LHA is woefully inadequate. It was supposed to cover the cheapest 30% of properties. Now it covers less than 5% and it's pretty certain those are existing tenancies, not new ones. Council's can and do hand out Discretionary Housing Payments to bridge the gap if they think it will make a tenancy sustainable. One of my tenants received a DHP for 11 months to cover half the shortfall in her rent. The Council accepted her existing house was far cheaper than anything on the market at that time and that her bedroom entitlement would increase when her eldest son was 16.
That's another issue. Why is it OK for a family to share a hotel room for months but it's not OK for 2 brothers aged 12 and 16 to share a bedroom? When was the bedroom entitlement invented and why? It causes huge problems for families. I get so many enquiries from people who are desperate to rent a two bed (because that's what they can afford) but can't because of the permutation of children they have.
Agree, if a higher density is allowable, sharing rents, that would make things much more affordable for people on low income.
Utter twaddle as always
Ok the rates have something to do with it. But you could flood the system with cash and there is still no stock to fill the voids. As usual the finger pointing, non charity that houses no one , spouting hot air.
So Polly Bleat turns her attention to GRIM B & Bs and Hostels. It really must be awful being her and having such a negative outlook on life. Landlords are greedy, B & Bs and Hostels are grim, but tenants are wonderful. Perhaps Shelter could use some of their millions and build some of their Utopian properties to rent out to wonderful tenants? Then they could really do what it says on the tin, instead of being moaning Minnies every day.
So well said
First thing Polly Neate has said in recent memory that actually isn't i) Aimed solely at increasing Shelters appeal (to make them look good and gain more supporters) ii) Based on something that's obviously inaccurate iii) Would be good if the government listened to.
I think I can see pigs flying over my house!
No, skyrocketing rents are a result of incessant regulation/compliance costs, skyrocketing mortgage costs and tenant damage! Look under your nose and stop deflecting from the truth.
PS .. imho there should only be one homeless charity. All donations would go through them cutting millions of pounds worth of duplicate administration which could actually be used to build homes!
Shelter only need to look to themselves for the real cause of sky rocketing rents
I have just had a quick read and look through Shelter's latest Annual Report for 2021/2022 and it makes interesting reading:
Income total was £75.20m in 2021/22
Expenditure total was £73.53m in 2021/22
Wages and salaries £38,724,000
Social security costs £3,792,000
Pension costs £3,025,000
Other staff-related costs £1,808,000
Total £47,349,000
so of the £75m income, £47m of that is spent on wages and Polly Neate's salary was £135,000 a year
A near 30m profit that they pay no tax on as a charitable status... Very interesting
As a charity, I thought most staff would be volunteers?
@ John Young - ah, the innocence of the young!
Those charity muggers in the streets all get paid. No one is a volunteer. They are all guilty of people bad people.
Clearly a business. Not a charity.
Damian excellent. Shelter.
Shame on you why did create Sky Rocketing Rents make Housing unaffordable and make hundreds of thousands Homeless. While you live in clover paying your staff £38m to house no one, just attack Private Landlords who house
9’000’000 off their own backs with private finance, taxed to the eyeballs and Regulated to oblivion. It’s about time you had your Charity Status removed, we the tax payers are funding you to Bankrupt us and make hundreds of thousands homeless. Shame on you again.
So much unnecessary time wasting it’s annoying, just trying to do a Tenancy Agreement. I already had How 2 Rent guides printed that only came out in March 2023, now scrap those changed again October 2023 this is 13 times they have changed it in 8 years, do they not know the hell what
they are doing some mockery.
I think the latest is to accommodate the free non-means tested Legal Aid they are ALL ENTITLED TO WITH OUR TAXES. Do landlords get Legal Aid? They don't get anything..... All one sided.
Am I the only one who thinks there is more than a passing connection between Shelter's management team and Government ministers? Where and how often do they meet?
No, you are far from alone in believing Polly shares a hot bed of political conspiracy with several MPs.
Robin of Course not the evil hand is usually in, taking away our Deposits 2007, the Private Members Bill that failed, the 2015 De-Regulation Act calling for that, now they can’t shut up calling for The Renter’s Reform Bill and Removal of Section 21 telling Government to hurry it up. They have their snout in being invited into the Parliamentary Select Committee making Policy for PRS while no one ask landlords.
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