The ‘Tackling Homelessness’ report also warned of an overreliance on the use of temporary accommodation, due in part to a dwindling and increasingly costly housing stock.   

The PAC is calling for a clear strategy and stronger support for local authorities to address what has become a crisis situation. Of the estimated £2.1 billion spent by local authorities in 2023-24 on temporary accommodation, the report finds that a large proportion was used to meet the urgent need for immediate support, rather than the preventative measures so desperately needed. Despite there being an overarching homelessness strategy for each of the devolved nations, England does not have one.

The report calls on the government to set out such a strategy, which should clearly outline how preventative measures will be incentivised. It also argues for an exemption from requirements on local connections or residency for all veterans, care leavers under 25 years, and victims of domestic abuse, as well as for competition between local authorities and the Home Office for temporary accommodation to be eliminated.

The report raises deep concerns about the number of families being housed outside their local area. This has risen to 39,000, a practice which alarmingly seems to be becoming increasingly common. Equally alarming is the fact that 6,000 homeless families with children live in B&Bs, due to the lack of alternative accommodation.

It stresses the detrimental impact that living in this type of accommodation has on people’s lives; particularly children whose safety and wellbeing can be severely compromised as a result. The government should encourage better coordination between local authorities and set out how it will support them to reduce the use of B&Bs, the report added. 

With 45% of households facing a shortfall between the Local Housing Allowance (LHA) they receive and the rent they pay, the PAC warns the government is not considering the impact on homelessness when setting LHA rates. The decisions made by the government to determine LHA are seemingly subjective. This issue is exacerbated by the lack of affordable housing, on which the government seems frustratingly unable to provide detailed assurances, the report suggests.

Further, poor oversight of the sector and gaps in current regulations are allowing landlords to provide costly, sub-standard housing with little support, supervision or care. The PAC urges the government to set out the logic behind LHA rates and details of the proposed new housing strategy along with strengthening its position to provide better oversight of the sector.

Sir Geoffrey Clifton-Brown MP, chair of the Committee, said: “My Committee is deeply concerned by the number of people currently being housed in sub-standard, overpriced and at times, wholly inappropriate accommodation, sometimes a long way from their previous home. A lack of affordable housing, a focus on short-term solutions and no clear strategy to tackle this issue have left us with thousands of families in deeply troubling circumstances. Worryingly there seems to be no desire to move away from an unsatisfactory short-term system, leaving local authorities attempting to save a sinking ship with a little more than a leaky bucket.

“Local authorities find themselves at breaking point as they haemorrhage funds to cover the rising costs of housing families in temporary accommodation. We are calling for an overarching strategy that addresses the need for better connectivity across Government departments to tackle the root causes of this crisis. Without one, we fear this will remain an issue into which money is simply poured, without effectively tackling the blight of homelessness. Government must learn from the lessons of the past to inform what they will do in the future.”

Responding to the report, Rachael Williamson, interim director of policy, communications and external affairs, said: “CIH welcomes the Public Accounts Committee report and recommendations, which reinforce the urgent need for a cross-government homelessness strategy in England. We strongly support the call for increased investment in social rented homes, better oversight of supported housing, and aligning Local Housing Allowance rates with market rents to prevent homelessness.

“The government must act decisively to tackle the systemic issues driving this crisis and provide long-term solutions that offer security and stability for all. The forthcoming Spending Review provides an opportunity to address this with the underpinning investment needed.”

Matt Downie, chief executive at Crisis, added: “It’s a relief to see that this Public Accounts Committee report is exposing the challenges that those of us supporting people facing homelessness, have been warning about for many years. It highlights the need for an ambitious homelessness strategy from government.

“Living costs and rents have been skyrocketing, and homelessness increasing. Local councils are stuck between a rock and a hard place, due to limited funds, and the impact on people facing homelessness has been catastrophic. Too often people are turned away from any help altogether, while others are forced to live in expensive and unsuitable temporary accommodation. We’ve heard stories of people having to heat up food on radiators to feed their family.

“We need bold action to prevent more people facing homelessness and the upcoming government strategy is a huge opportunity to do this. We hope the government listens to the committee’s recommendations, especially the urgent need to end the intermittent freezing of LHA rates and to fund local authorities adequately. We know what needs to be done, it’s now a matter of acting immediately.”