Photograph: Liberton, Edinburgh, 2025. Copyright Neil Morland
158,000 homeless households were occupying temporary accommodation on a single night in Spring 2025, with rates at or near to record highs in England (130,000), Northern Ireland (5,000) Scotland (17,000) and Wales (6,000). Although homelessness is a devolved policy matter, the UK government retains to decision-making powers to set rules for temporary accommodation housing benefit subsidy and local housing allowance rates. Given the prevailing high numbers of households occupying temporary accommodation, there was an expectation that the UK government’s budget 2025 would include financial measures to help improve temporary accommodation outcomes.
The chancellor announced a reduction to the financial cliff edge for claimants in temporary accommodation (and supported housing) from Autumn 2026. Furthermore, new revenue and capital spending for tackling and preventing homelessness in England was also announced. Announcements on expenditure in other UK nations is expected in the next few weeks, from finance ministers for Northern Ireland, Scotland and Wales.
However, temporary accommodation housing benefit subsidy rates have not been updated. Local housing allowance rates have not been restored to the original 50th percentile rating. Local housing allowance rates continue to be frozen. As result of these decisions, the number of households occupying temporary accommodation will remain high and are likely to further increase. This is because councils will continue to incur debts, as the cost of providing temporary accommodation will still exceed the amount they’re able to reclaim from the Department of Work and Pensions. Additionally, local authorities will continue to be impaired in obtaining private sector housing to bring homelessness duties to an end, as they are able offer private sector landlord incentives only at well below submarket rates. It will have adverse consequences for new legislation that has been passed in Scotland and is being proposed in Wales.
The budget report also included a commitment to review value for money of homelessness services. This review will assess funding and delivery models, including ways to improve the supply of good value for money and good quality temporary accommodation (and supported housing), such as greater cooperation and planning in procurement between different parts of national, regional and local government.
So, what can be done to improve temporary accommodation outcomes.
First, it’s important to be clear about the change to achieved with temporary accommodation, what outcomes or improvements are to be sought? Is itto reduce the number of households occupying temporary accommodation, improve the standard of temporary accommodation, reduce the length of time households occupy temporary accommodation, shrink temporary accommodation expenditure deficit, or all of these things, or something else? Whatever changes are pursued, they should have equal benefit to government and homeless households.
Second, measure and monitor progress towards improving temporary accommodation outcomes. Taking action to improve performance where the desired change is not being achieved, was crucial the successful in England that led to a reduction of temporary accommodation by 50% to just under 50,000 (the prevailing record low) from 2005 to 2010. The new local government performance framework for England includes a performance measure specific to temporary accommodation, and local authorities regularly submit statistics to national governments on temporary accommodation usage. However, much of this data focuses on the quantity of household occupying temporary accommodation and not enough data focuses on the quality of temporary accommodation, the effort associated with providing temporary accommodation and the effect of temporarily accommodating homeless households. Measuring and monitoring the right performance information will help to improve decisions about activities that need to be carried out to improve temporary accommodation outcomes.
Third, make sure to carry out the right activities that will actually lead to improved temporary accommodation outcomes. Putting in place the relevant services, strategies and commissioning arrangements will deliver improved temporary accommodation outcomes. The following activities are essential to improving temporary accommodation outcomes.
- Avoid the need to provide temporary accommodation. Make sure all measures that help people remain in their existing home or to obtain alternative accommodation, are in place and that they’re administered efficiently and effectively.
- When temporary accommodation is provided, make sure it’s of right quality and value for money. Have a plan to ensure there is an enough temporary accommodation of the right standard, in the right locations, at a reasonable rate, to meet demand.
- Help households occupying temporary accommodation to move on as quickly as possible. Prioritise households occupying temporary accommodation for private sector access incentives and allocation of social housing.
Fourth, have the right resources to achieve the desire change for temporary accommodation. Maximise the potential of the money, people and other materials available. Updating the temporary accommodation housing benefit subsidy rules, which uses rates from 2011 and restoring local housing allowance to the 50th percentile rate, is fundamental to achieving better value for money from temporary accommodation. This will allow councils to maximise the impact of their resources for temporary accommodation.
To improve temporary accommodation outcomes, there needs to be clarity and consensus about what improvements need to be achieved. Any improvements pursued need to better meet the needs of homeless households whilst also delivering improved value for money for all layers of government. To improve temporary accommodation outcomes, it’s crucial that lessons are learnt from the previous successful reduction of temporary accommodation that saw all levels fall by more than half over five-year period. This this means having a strong performance management framework and ensuring that there is sufficient capacity to achieved improved outcomes for temporary accommodation.
