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Temporary Accommodation: Costs

Answer

The government inherited a homelessness crisis, and recognises that the number of households in temporary accommodation has increased in recent years. On 31 December 2025, 134,210 households were in temporary accommodation, including 85,800 households with children (see published temporary accommodation statistics here.

As set out in the National Plan to End Homelessness, this reflects a combination of factors, including a lack of affordable housing, rising poverty, reduced focus on prevention and wider pressures across public services.

The Department does not produce an estimate of the total cost of temporary accommodation to local authorities for the current financial year. Published Local Government Finance returns provide data on local authority expenditure in previous years. In 2024/25, Local authorities’ net expenditure on temporary accommodation in England was £1.43 billion.

The government is providing £969 million of temporary accommodation funding to local authorities over the period 2026/27 to 2028/29 through the Local Government Finance Settlement, using the new Fair Funding Assessment, which includes a formula reflecting proportional need for temporary accommodation across the country. In addition, the government is investing £950 million through the fourth round of the Local Authority Housing Fund to increase the supply of good-quality temporary accommodation.

Secondary information

Type

Written question

Reference

HL2290

Session

2026-27

Attachment

Statistics; Local Government Finance return; National plan to end Homelessness

Subjects

Costs Local government Temporary accommodation

Contains statistics

Yes

Link

View this Written question on www.parliament.uk