A sharp rise in families living in temporary accommodation has prompted calls from English councils for the government to deal with the homelessness crisis.

The total number of people living in temporary accommodation across England rose by 12.3% to a record 117,450 households in the year up to March 2024, the latest government data shows.

Families with children in temporary accommodation increased by 14.7% in a year to 74,530.

There were 151,630 children living in temporary accommodation. That marks an increase of 15% compared with the end of March last year and is the highest figure since this measure began in 2004.

Meanwhile, single households increased by 8.5% to 42,920.

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Councils have a legal duty to provide emergency interim accommodation to homeless people while they help them look for a permanent solution.

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Local authorities get some funding from the government for this, but many are facing financial difficulties as they are having to dig into their own coffers, taking funding away from other areas or going into debt.

The District Councils’ Network, representing 169 English councils, has written to Housing Secretary and Deputy Prime Minister Angela Rayner to call for the government to make funding changes off the back of the latest data.

Homeless charity Crisis and the Local Government Association, which speaks for local government, have also signed the letter.

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Sky News reported exclusive data from London councils last week that showed the cost of temporary accommodation for homeless people in London had soared by 25% in the past year due to landlords selling up or choosing private tenants.

They are also having to resort to expensive, and often inadequate, hotels and B&Bs – something happening across the country.

This expense is forcing some London councils into potential bankruptcy.

Data released on Friday found the issue of private landlords serving eviction notices remains a major reason for people being made homeless.

A total of 45.5% (17,480) of households at risk of homelessness were in the private rented sector, which is a decrease of 2% from the previous year.

More of those households overall received eviction notices – 6,630 – up 1.2%.

The District Councils’ Network letter sent on Thursday says the financial impact on councils is “unsustainable”, with many English councils now spending between 20% and 50% of their total net budget on temporary accommodation.

Over the past five years, spending on temporary accommodation by district councils has “skyrocketed” by more than 200%, it added.

Data from the previous year, the latest available, shows £1.74bn was spent on temporary accommodation in the year up to March 2023 – an increase of 9% on the previous year.

With more accommodation being needed this past year, and costs rising, that spending will have only risen further.

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Calls to change funding

Charity Crisis said the financial pressure is impacting on local authorities’ ability to prevent homelessness, as resources are taken up with crisis intervention as opposed to prevention.

The new data also found the most common reason homeless people owed a duty by councils needed support was due to mental health problems, with 22,500, or 26% with mental health problems.

The letter has called for the government to:

• Commit to uprate Local Housing Allowance rates annually to keep pace with private rents

• Remove the housing benefit subsidy cap (currently frozen at 2011 rates) – the amount councils can claim from the government for temporary accommodation

• Commit to long-term investment to deliver 100,000 homes a year for social rent for the next 15 years

• Create a substantial capital fund to enable councils to rapidly build or acquire genuinely affordable housing for those at risk of homelessness

• Establish a Unit for Ending Homelessness, with clear targets and adequate long-term funding.

The letter said: “Without swift and decisive action, we fear that more councils will be forced to cut vital preventative services, creating a vicious cycle that will only exacerbate the homelessness crisis and lead to greater costs for the taxpayer.

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“The time for half-measures has passed, a paradigm shift is needed to redirect resources from mitigating homelessness to preventing it entirely.”

Ms Rayner said: “We are facing the most acute housing crisis in living memory and homelessness remains at record levels. This is nothing short of a national scandal.

“Urgent action must be taken to fix this. That’s why we are working across government and with local leaders to develop a long-term strategy to end homelessness for good.

“Work is already underway to stop people from becoming homeless in the first place.

“This includes delivering the biggest increase in social and affordable homebuilding in a generation, abolishing Section 21 ‘no fault’ evictions and a multi-million pound package to provide homes for families most at risk of homelessness.”

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Homeless charity Mungo said 70% of homeless people recently supported by its teams said mental health caused them distress or hindered their recovery.

A spokesman said: “Not knowing where your next meal comes from, or if you will have a roof over your head come evening, can cause extreme stress and anxiety.

“However, poor mental health can cut people off from the very services that can help them out of homelessness and from mental health support specifically.

“We really need to bring homelessness and mental health care together and will continue to work with government and local government to pursue holistic responses.”

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