Inside Housing – Home – Government must adopt ‘genuinely’ cross-departmental approach to tackling homelessness, NAO says

A spokesperson for the Ministry of Housing, Communities and Local Government said: “Homelessness levels have sky-rocketed and too many families are living in temporary accommodation. 
“We will take the action needed to tackle this issue and develop a long-term, cross-government strategy working with mayors and councils to put Britain back on track to ending homelessness.
“We welcome the NAO’s report, which shines a light on this important issue and will consider their recommendations as we develop our strategy.” 
Crisis ​described the situation as a “scandal”. 
​Francesca Albanese, executive director of policy and social change at Crisis, said: “With homelessness at record levels, and the numbers expected to rise even more, we can’t delay progress to tackle this scandal any longer.
“A perfect storm of sky-high rents, a dire shortage of affordable housing and increased living costs are pushing more and more people to the brink. While councils are doing all they can to support struggling households, operating under this level of pressure is not sustainable.”
Inside Housing’s investigation into in-person homeless approaches to councils found that some only offer online or via the phone services, leaving people struggling to get help. 
Ms Albanese said it is “​critical” that the Westminster government “urgently establish a homelessness unit to work across all departments”. 
“Alongside this, we need clear plans on how it will deliver the social housing we need and properly fund local authorities, so that everyone can have a safe and stable home,”​ she added. 
London Councils, the cross-party group representing local authorities in the capital, said the report demonstrates the “urgent need for a new approach”.
Grace Williams, executive member for housing and regeneration at London Councils, said homelessness a “national emergency”, but is “not inevitable”. 
She added: “As this report clearly demonstrates, government policy could be far more effective in tackling homelessness and getting to grips with its underlying causes. 
“Better co-ordination across government departments, greater housing security, sufficient funding for councils and more investment in building affordable homes are key to turning the situation around.”
Ms Williams stated that London boroughs are “determined to work with the new government and the mayor of London in tackling this crisis”, adding that “there is not a moment to waste”. 
In February, the group revealed that London boroughs’ spending on temporary accommodation grew by almost 40% last year, reaching £90m per month in 2022-23. 
London Councils’ policy priorities for addressing homelessness include boosting homelessness prevention grant funding and removing the January 2011 cap on LHA payable for temporary accommodation in housing benefit subsidy. 
Councils are losing millions of pounds in subsidy for temporary accommodation because of rules agreed more than a decade ago.
Local authorities pay the cost of that housing benefit upfront and then are paid back by the Department for Work and Pensions through subsidy arrangements.
Households receive the full housing benefit they are entitled to, but the amount the council can claim back for temporary accommodation is limited to 90% of the LHA rates from January 2011. 
The NAO report highlights that the subsidy gap is a “major concern for councils”. In April it emerged that Bristol City Council was projecting a £17m gap for 2024-25, while the rules led to a £5.9m loss for Sheffield City Council in 2022-23.
London Councils also called for increased capital investment for housing acquisitions, which could help councils address the shortage of temporary accommodation, particularly through acquiring homes being sold by private landlords as they exit the market.
It also called on the government to bring forward a cross-departmental strategy to reduce homelessness. 
John Glenton, executive director of care and support at housing association Riverside, said more money must be spent on prevention. 
He said Riverside has worked with Sefton Council on a homelessness prevention scheme “with a 96% success rate”. 
“By placing families in social housing with a dedicated support worker, we have saved the council £1.2m over four years – a 75% saving on the cost of putting those families in temporary accommodation,” he explained. 
He added that by comparison, putting families in temporary accommodation is “creating a humanitarian crisis behind closed doors” and a “financial crisis” in town halls and city halls across England.
Mr Glenton said the landlord thinks that the NAO’s call for an overarching homelessness strategy “does not go far enough”.
“Having a joined-up national approach to both housing and homelessness means councils can learn how to partner with housing associations to better use existing local housing supply to get families out of temporary accommodation, as we have done in Sefton.
“However, we desperately need to build more social housing to provide a long-term, sustainable solution to the housing and homelessness crisis facing the nation,” he said. 



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