Emergency housing spend exposes ‘false economy’

Councils in London spent more than £630 million on emergency accommodation since 2010, according to new figures released under a Freedom of Information request.
The information reveals that Haringey Council spent the most – £197 million – on accommodation including bed and breakfast and hotels over the period.
Westminster came second in the list, with spending of £111 million, followed by Enfield with £59 million.
Campbell Robb, chief executive of Shelter, said: “Our welfare system must be fair, but these figures show that cuts to our housing safety net are simply a false economy, leaving more families stuck in emergency accommodation like bed and breakfasts, while the cost to the public purse soars.
“The only way to bring down these costs is to protect the safety net that stops more of us spiralling down into homelessness, and to build the affordable homes we desperately need.”
Experts in local government finance predicted early last year that government policy changes could lead to large increases in spending on temporary accommodation.
Writing in his blog in April 2103, Agent 151 said: “Changes to benefit entitlements, and in particular the introduction of benefit caps, have already convinced many landlords to exit the benefit tenant market, and it is likely many more will follow when rent arrears become a reality.
“As a direct result, bed and breakfast numbers are climbing fast, and enforced migration of the homeless away from the areas where there are jobs is already beginning to happen in significant numbers.”
A spokesman for London Councils, which represents London’s 33 local authorities, said: “Councils are facing the double pressure of welfare reforms and the lack of affordable good quality housing…”
The figures also showed that more than 180,000 people were on housing waiting lists in the capital last year.
Housing minister Kris Hopkins said: “”Homelessness is lower now than in 27 of the last 30 years. We have retained a strong homelessness safety net protected in law, supported by £470 million of funding (over and above general grant to local authorities) in the current spending review to prevent and tackle homelessness, rough sleeping and repossessions.”