The number of people in temporary accommodation in England has never been as high as it is today. At the time of writing, 117,000 households, with more than 150,000 children, are resident in temporary accommodation - numbers which could rise yet further still.

Read our our flagship report: Temporary Accommodation in England: Is it Value for Money?

The legally-enshrined provision of temporary accommodation is a safety net of which we as a country should be proud. In many comparable nations, people at risk of homelessness would find themselves living on the street or in shelters. Nevertheless, it is clear that much of this unprecedented spending on temporary accommodation cannot be regarded as value for money. Of the £ 2.29 billion of public money spent on temporary accommodation in 2023-24, £700 million went on Bed and Breakfasts and hotels. While such accommodation does perform an essential role in an emergency, local authorities also acknowledge that it can be highly unsuitable to people’s needs. This is due to overcrowding, use of shared facilities, lack of support, restricted opportunities for children, and potential safety concerns. A further strong indication of poor value is that many local authorities consider there to be no option other than to divert funding away from their prevention activities, in order to fund temporary accommodation. 

And, fundamentally, spending on homelessness has now joined social care as a genuine threat to the financial sustainability of individual local authorities. It does not seem beyond the realms of possibility that a council in England will shortly be driven to issue a bankruptcy notice by its spending on temporary accommodation. 

It is for all of these reasons that we at the Centre for Homelessness Impact chose to launch our value for money work with an initial focus on temporary accommodation, which constitutes 75% of all public homelessness spending in England. In addition to analysing how money is spent, we have worked closely with local authorities throughout the four countries of the United Kingdom to identify potential solutions to their temporary accommodation cost pressures. Our first spotlight report focuses on the value for money of temporary accommodation in England.

It is clear that demand for temporary accommodation is driven by a number of deep-rooted structural causes - notably, the shortage of affordable housing. Addressing these could take years, as well as significant investment. However, our work with local authorities suggests that there are actions which both national Government and local authorities can take to improve the value for money of their use of temporary accommodation. 

Nationally, despite the numbers involved and the financial risk now posed by temporary accommodation, there is no strategy for temporary accommodation - unlike for rough sleeping. Reflecting the cross-cutting nature of both the causes of homelessness and its potential solutions, we recommend that the Government put in place a national strategy for tackling all forms of homelessness. This should set out clearly objectives for the use of temporary accommodation, be led centrally, and very clearly set out the responsibilities of all. 

Turning to local government, it would be too simplistic to suggest to local authorities that silver bullets are available. Nevertheless, our work with councils suggests that it may be possible to respond with greater agility to demand for temporary accommodation through an improved use of data and strategic planning. Our report therefore recommends that local authorities should review the data they hold and use on temporary accommodation, including on the reasons why people become homeless in the first place. 

And, while so much discussion around temporary accommodation relates to its cost, we must never forget that we are talking about the needs of human beings at a potentially highly vulnerable time in their lives. Indeed, our work with local authorities suggests that the needs of people experiencing homelessness approaching councils for assistance appear to be becoming increasingly complex. Because of this, another of our report’s recommendations is that the Ministry of Housing, Communities and Local Government should assess the complexity of need of people experiencing homelessness placed in temporary accommodation, and whether this is being fully met. Additionally, given the potential vulnerability of people entering temporary accommodation, and the considerable length of stays that some people and families experience, it is concerning that there are currently no national quality standards in place for its use. We recommend the Government acts to tackle this omission. 

Current numbers in temporary accommodation are without precedent. Finances are stretched. Temporary Accommodation itself is often anything but “temporary”, and is potentially highly unsuitable for people’s needs. While many long term solutions will take time and vast investment to implement, our work suggests that there are areas where all levels of government can take action, and based on our report we strongly recommend that they do so as a matter of some urgency. 

Please do read the report and, if you would be interested in learning more about CHI’s work on value for money in homelessness services, or indeed working with us on, please get in touch at: matthew@homelessnessimpact.org 

• Matthew Wilkins is Head of Value for Money at the Centre for Homelessness Impact

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• The image used in this article is of Selma and Russ. They lived in their flat for 13 years, then they were issued with a Section 21 notice, and were placed into a Travelodge by their local council. They were there for 10 and a half months, also with their teenage daughter and dog, but have just been offered a new flat. They are both working adults as well as having five degrees between them, but their mental health has suffered since living in temporary accommodation - particularly being unable to eat proper food without a kitchen.