According to analysis from the District Councils’ Network, some councils around the country are having to commit the equivalent of half of their council tax revenue on combatting homelessness.
Three councils are being forced to spend more than the equivalent of 50% of their council tax receipts on temporary accommodation, further emphasising the scale of the worsening housing crisis. By spending this investment on supporting homeless households, vital funding is being diverted away from other services that residents rely on.
Crawley Borough Council (67%), Hastings Borough Council (58%), and Dartford Borough Council (50%) are not the only councils that are spending the equivalent of a considerable chunk of their council tax income on homelessness support, however, as the research from the DCN has found that 16 district councils are spending the equivalent of over 25%.
This comes as the last year has seen a 12.3% increase in the number of households living in temporary accommodation, with this including 74,530 households with children.
One of the reasons that the DCN has given for the worsening of the crisis is government policy, with blame being put on the cap that has been put on how much funding councils are given for housing people in temporary accommodation, with this funding being based on rental statistics from 2011. This has led to a call from the DCN to lift the thirteen-year cap so that funding can reflect 2024’s rental costs.

Alongside this call, other measures that the DCN has urged the government to implement include:
- Investment in affordable housing initiatives
- Enhanced powers and funding for local authorities to tackle the causes of homelessness
- A cross-government strategy to address socio-economic factors that contribute to the crisis
Housing Spokesperson at the District Councils’ Network Cllr Hannah Dalton said:
“For too long the Government has increasingly shunted the costs of homelessness onto councils and their residents, straining our budgets to breaking point.
“Residents will be shocked to learn that the equivalent of as much as half of their council tax is being spent on temporary accommodation rather than the local services they expect their council to deliver for them. This housing crisis is impacting on every taxpayer and the entire community.
“When such a large sum is diverted to temporary housing, it leaves little for community initiatives, leisure services, green spaces and essential amenities. The Government must act now to address this unsustainable situation, providing immediate financial support for councils facing the worst problems and empowering councils to prevent homelessness in the first place.
“Without swift action, we risk a domino effect where councils have no option but to cut services which prevent homelessness, leading to a worsening homelessness problem and a vicious cycle that will swallow up even more of local taxpayers’ money.
“Councils would far rather be investing in preventing homelessness and in providing houses for everyone in our community who needs one, than spending vast sums on temporary accommodation. By giving us long-term sustainable funding and the powers we need we can make this much-needed shift, which will offer council taxpayers better value in future.”
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