Image: Istock
Temporary accommodation – Spending Review submission
The Temporary Accommodation Network’s proposals to the government’s spending review focus on increasing affordable housing supply and preventing homelessness
GROWTH, DEVELOPMENT & REGENERATION
James McHugh
Senior Consultant, Campbell Tickell
James McHugh
Senior Consultant, Campbell Tickell
Issue 77 | April 2025
The Temporary Accommodation Network (TAN) is a diverse group of organisations and individuals from across the housing sector with an interest and expertise in tackling the current crisis in temporary accommodation (TA).
TA levels are at their highest ever and there is an urgent need to find solutions to avoid the dire consequences this has for the public finances and for those living in poor-quality or uncertain housing. There is ample evidence showing the effects of this, including recent data showing TA expenditure is being under-reported and was £2.42 billion in 2023-24, and that TA contributed to the deaths of at least 74 children in England in the past five years.
likely spending on temporary accommodation in England in 2023-24 (total reported spend was £2.29 billion)
temporary accommodation has contributed to the death of 74 children over the past five years
Housing delivery
We welcome the Government’s focus on housebuilding, particularly of affordable homes, which will provide a permanent solution to this crisis. Also welcome are measures contained in the Renters (Reform) Bill, the forthcoming long-term housing strategy, and Inter-Ministerial Group on Tackling Homelessness and Rough Sleeping.
However, none of this will provide quick solutions to this crisis and we believe there are a number of policy reforms which the Government should consider at the Spending Review, which would alleviate the TA crisis immediately.
These would benefit public finances by avoiding secondary costs to other public services (i.e. health, education, social care) as a result of people living in TA and more importantly, allow individuals to flourish and make a greater contribution to our shared society rather than just survive.
Funding and supply proposals
Our proposals relate to the Ministry of Housing, Communities & Local Government, Department for Work & Pensions, and Treasury.
The increasing costs and number of households living in TA represents poor value for money to the Exchequer, threatens local authorities’ abilities to comply with their statutory duties, and diverts resources from supporting economic growth.
Funding:
- Reverse the planned freeze of Local Housing Allowance (LHA) rates from 2025/26 onwards and commit to future annual increases in line with either inflation or 30% of local markets.
- Review the benefit cap – either rebase in line with inflation or abolish entirely. This, and below market LHA rates are key drivers of households moving into TA.
- Provide more revenue funding for local authorities to support households living in TA, especially those who have no option but to move out of their local area.
- Commit to a long-term Affordable Homes Programme, with increased flexibilities to provide TA, including to bring empty homes back into use, and access to funding for a wider range of organisations.
- Provide further rounds of the Local Authority Housing Fund to provide housing options, particularly for demand arising from the asylum system and prisons.
Supply:
- Specify that local planning authorities must take account of TA in their Local Plans and underlying evidence base (i.e. local housing needs assessments).
- Request that each local authority publish a TA delivery plan and local standards to help potential partners design and deliver acceptable TA solutions.
- Publish statutory guidance for local authorities on out-of-area TA placements.
- Encourage Homes England and combined authorities to promote the use of Modern Methods of Construction and modular solutions to TA.
- Support local authorities and other public bodies to convert under-used assets into TA, revising best value guidance to allow this, and funding a pilot scheme.
- Revise the Rent Standard to support the conversion of long-term voids into TA, while retaining the option of switching back to general needs at a later date.
- Publish official guidance on expected quality standards in TA, covering the five basics of wifi, laundry, cooking facilities, storage and information.
Temporary Accommodation Network – official launch
Following our first temporary accommodation (TA) conference in November 2024, Campbell Tickell and Devonshires set up Temporary Accommodation Network (TAN). The TAN is a diverse group of organisations and individuals from across the housing sector with an interest and expertise in tackling the current crisis in TA. The focus of our network is to share such best practice and generate solutions which can be applied and scaled up. If you are interested in attending, please email: events@campbelltickell.com
For more information or to discuss these proposals in detail, please email James McHugh
