PARLIAMENTARY DEBATE
Temporary Accommodation - 24 October 2024 (Commons/Commons Chamber)

I am so grateful to have the opportunity to bring the subject of the crisis of temporary accommodation to the House of Commons today. I thank the Minister for her time and attention this afternoon. Having first met at the ballot box in Bethnal Green and Bow in 2019, it is great to meet here again, at the Dispatch Box.

It means a lot to me to raise this issue today on behalf of my constituent Kelly and her family. Kelly is a proud mum of three, wife to Devon, and a fighter. After being served with a section 21 notice by her landlord, Kelly and her family were forced to leave their home. She was determined to find a new home in the private rented sector but faced so many barriers. One was that many landlords required her to find a guarantor whose salary bracket was not one shared by folks in her network. Another was that many landlords demanded six months’ rent in advance. For someone like Kelly who receives universal credit, having six months’ worth of Eastbourne private sector rent in the bank—to pay so much up-front rent—would disqualify her from universal credit in a heartbeat.

Despite pulling out all the stops to find a new home, having been displaced from their previous one, Kelly, her three children and their stepdad Devon have been backed into the corner of homelessness—into temporary accommodation until a longer-term home can be found via the council or the private rented sector. This accommodation is too small to cater to their aspirations and their needs, especially those of Kelly’s awesome teenage son, Joseph. This is a combination that, by its very nature, is temporary and not secure; accommodation that forces families to exist, not live, and that could not feel further from a home. That is not fair. I have taken up Kelly’s case, and my team and I are working hard to support her, but what I find so extraordinary about Kelly is that in the midst of unspeakable hardship she is so often zooming out and reflecting on just how broken the whole system is, and she has been a tireless advocate for reforming it. A week or so ago, she said:

“Josh, take me to Parliament, and we’ll speak about it up there!”

Days later, I secured this Adjournment debate, which enables us to do exactly that.

I thank the hon. Member for securing the debate. It is an important issue, and I agree that it is admirable for someone in such circumstances to pull out and see the bigger picture. To add to that bigger picture, in the borough of Hackney, half of which I represent, the forecast cost of temporary accommodation is £54 million this year, and there are eight primary schools’ worth of children, equivalent to 1% of our population, living in temporary accommodation. I am sure that the hon. Member would agree that the position is unsustainable, and I congratulate him again on bringing it to the attention of the House.

I could not agree more, and I will come to the costs of temporary accommodation later. The hon. Lady knows as well as I do that the National Audit Office described the situation as unsustainable. It needs a resolution, which is why today’s debate is so important.

On securing the debate, I called Kelly, shared the news, and she said in reply:

“What needs to be said is going to be said in the place it needs to be said to the person it needs to be said to. You are the right person to say it, Josh.”

It is therefore so humbling to welcome Kelly and her son Joseph to the Public Gallery. I hope that I am the right person, that I say what needs to be said, and that I do not let Kelly and families like hers down. With her blessing, I have shared some of Kelly’s story today. She is just one of the 117,450 families who are in temporary accommodation in this country right now. That is a 12% rise compared with last year. Heartbreakingly, more than 150,000 children are living in temporary accommodation, which is enough to fill 5,000 classrooms.

I want to mention the plight of children missing from school. There is a massive problem with children going into temporary accommodation and simultaneously losing their school place because they have moved out of the area, or alternatively trying to retain their school place in the hope of being able to move back to the area, and then missing school for a sustained period. I wanted to draw attention to that particular difficulty. As far as I am aware, at the moment we do not measure educational outcomes for children who have been in temporary accommodation. Would the hon. Member encourage us to start doing that?

I absolutely would encourage that. There needs to be more co-ordination between local authorities, educational settings and health and care settings. Many have advocated for a notification system in order to aid the knowledge of those situations, so that they can be addressed.

The circumstances are devastating, and we hear from hon. Members who have made interventions that that is the case in their patches too. Shelter estimates that more than two thirds of people in temporary accommodation have inadequate access to basic facilities—to cook, for example. Many food banks, including mine in Eastbourne, supply kettle packs, because many families in temporary accommodation are unable to cook or heat the food that they get from a food bank in any other way. Isolation is also a consequence, especially for those who are placed in temporary accommodation miles away from their support networks, or where the rules of their accommodation ban visitors. Most shockingly, according to the Shared Health Foundation analysis of the national childhood mortality database, temporary accommodation has been a contributing factor in the deaths of 42 infants since 2019. We cannot go on like this.

Not only is that unacceptable on a human level, but as I said earlier, the National Audit Office has been clear that the situation is unsustainable for local authorities—especially mine in Eastbourne. In my hometown, the number of families in temporary accommodation has doubled since 2019. That, combined with our food bank becoming the busiest Trussell Trust food bank in the country—it distributed more food parcels per head than any other in the UK—led to my campaign to declare a cost of living emergency in Eastbourne. It was the first place in the UK to do so, and that unlocked emergency support for those struggling most.

The surge in temporary accommodation led to the financial cost to the council jumping from £2.2 million in 2019 to the £5 million projected for this year.

I thank the hon. Gentleman for his indulgence in giving way again. He is right to cite the National Audit Office’s excellent work to shine a light on the issue. Does he agree that if we turned those many millions spent on temporary accommodation into money spent on good-quality affordable social housing, we would go a long way towards solving this problem?

The hon. Lady has a crystal ball, because she has again pre-empted something I will say later. I absolutely agree, and I commend her work in her former role as Chair of the Public Accounts Committee, which I know took a deep interest in this matter.

Costs in Eastbourne have skyrocketed. In fact, the council has said that 49p of every £1 that the council collects in its share of council tax is currently spent on temporary accommodation. As a result, Eastbourne borough council has been forced to consult on incredibly tough saving decisions to avoid issuing a section 114 notice, and the picture is similar in other councils.

There is a lot of clairvoyance and telepathy going on here, because I will also refer to that matter later. We absolutely need to consider what is going on with LHA rates, which have been frozen at the same level since 2011—a different era.

The Local Government Association said that local authorities in England have spent £2.29 billion on temporary accommodation—a 29% increase on the previous year, and 300% since 2015—and one in four councils say that they are likely to need emergency Government support to avoid a section 114 notice. So what are the solutions?

First and foremost, we must urgently improve conditions for families in temporary accommodation, such as Kelly’s. They should be entitled to essential facilities, and every effort must be made to prevent them from being displaced from their communities, support networks and the advice they need and deserve. Councils need emergency support to help them to avert imminent financial crisis. Eastbourne borough council leader Stephen Holt, who is also in the Public Gallery, led an emergency summit last year after which 118 other cross-party council leaders wrote to the previous Chancellor with proposals for emergency support. Those proposals fell on deaf ears, so I draw the Minister’s attention to that letter now. It includes proposals to uprate LHA rates with a view to updating them from their outdated 2011 levels.

We also need to address the appalling practice of people opportunistically renting private rented sector homes for the sole purpose of immediately sub-letting them to councils, at an inflated rate, so they can be used as temporary accommodation. That is contributing to the inflation. Beyond that, the Government must urgently publish a strategy to end homelessness in all its forms as soon as possible. That must involve building more homes, especially social housing.

My hon. Friend mentioned that 150,000 children are growing up in temporary accommodation. Does he agree that the health and educational outcomes of those children are adversely affected by their being in temporary accommodation, but the risk of moving reduces their chance to have a settled community and build up lifelong friendships? By developing more social homes with social rents, we would be able to give people secure tenures, and by removing hope value in development land parcels, we could develop more and cheaper social housing, reducing the economic pressures on the Government.

My hon. Friend is absolutely right, which is why I am proud that the Liberal Democrats have been campaigning for Britain to build 150,000 social homes a year; that was in our manifesto. Having grown up in social housing, I am especially proud of that commitment.

To conclude, I say to Kelly that I hope I have said what needs to be said, in the place that it needs to be said in, and to the person it needs to be said to. On behalf of all families in temporary accommodation, and all those who would otherwise find themselves there in the future, I make a plea to the Government: honour their experiences with reform, and dignify their humanity with action. Please do not let us and our councils down. This Government are our last hope.

I thank the hon. Member for Eastbourne (Josh Babarinde) for giving me the opportunity to contribute to his debate. I congratulate him on securing a debate on this extremely important topic. I agree with much of what he has said, and how he has highlighted the problem that we face.

My local authority of Newham faces an absolute crisis in temporary accommodation; the situation is one of the worst in the country. To give the House some indication of where we are, there are 6,700 households in temporary accommodation in Newham, which is more than in any other local authority. That number is growing by around 30 households a month. One in 20 homes in Newham is now temporary accommodation. The cost of temporary accommodation for next year will be £72 million, adding £31 million to the council’s budget overspend. Homeless applications this year are up by 26%, which adds to the borough’s waiting list—there are now 38,000 people waiting for housing.

While Chelmsford city council’s figures cannot match those given by the hon. Member, they are still stark. It is terrible to see how much they have changed over recent years. Does he agree that many councils around the country face this issue? In my constituency, the percentage of the council’s core spending that goes on temporary accommodation went up from 5.62% in 2020 to 24.44% in September 2024. The number of cases in 2020 was 256, but we are now looking at 500 cases. It is a massive increase that is very difficult for councils to cope with.

The hon. Lady makes a valuable point. The figures are hard to believe; sometimes I have to check that I have not misread them or added a zero. As she highlights, the issue affects councils across the country and seriously adds to their financial problems. This is clearly unaffordable and unsustainable, even in the short term. We desperately need support, so that we can deal with the impact on councils’ budgets; they face huge pressures already.

As the hon. Member for Eastbourne pointed out through the example of Kelly, his constituent who is in the Public Gallery, the issue is the impact on families. Since the cost of living crisis began, when the supply of temporary accommodation slumped and demand soared in my borough, my advice surgery has seen a massive increase in casework. People have come to see us who have been living for months in a hotel room—a perfectly decent hotel room for someone staying three or four days, but not for a family of four or five people for months on end. They are living in a single room without cooking facilities. The impact on the parents’ mental health and the children’s physical health and educational opportunities was really quite serious. It is difficult to deal with the sheer numbers.

I thank my hon. Friend and neighbour for giving way. I am old enough to remember when bed and breakfasts were commonly used for households who could not get permanent accommodation. That was rightly dealt with because it was a scourge on modern society. Does my hon. Friend agree that we are now slipping massively backwards because of the numbers he outlined, and that we need to find a quick solution, in order to support our constituents?

My hon. Friend is exactly right. We have gone back from people in temporary accommodation living in flats to hotels being the only option. My council is desperately seeking alternative solutions, but the sheer scale of the problem makes that very difficult. As a fellow east London MP, the Minister will understand the problem and the issues that we face. I ask the Government to look urgently at financial support in the short term, so that we can try to deal with the immediate crisis, but we also need a long-term solution—a financial solution to help councils through these difficulties, and a long-term solution, a way to build social housing. My council is one of those pioneering the building of new social housing, but in the grand scheme of things, we are effectively talking penny packets, given the scale of the issue that we need to deal with.

I appreciate that we inherited this crisis. It has been exacerbated by the cost of living crisis, and seriously exacerbated by the difficulties that councils have faced as a result of the funding settlements that they have had over the past 10 years. They are juggling 10 years of austerity and the cost of these problems. However, it is a crisis that we have to deal with. I am confident that we can, but it is clearly something that we have to tackle as a matter of urgency, not just for the sake of our councils’ budgets, but to help the people who most need help.

I welcome the hon. Member for Eastbourne (Josh Babarinde) to the House, and congratulate him on securing this important debate on funding for temporary accommodation. As we have heard from him and other hon. Members, this is such a serious issue. I know from my experience as an MP for an east London constituency that the impact that it has on children, families and the wider community is absolutely devastating; sadly, it can be a matter of life and death, because, as the hon. Member for Eastbourne says, the issue is the quality of housing as well as its supply.

This Government are absolutely committed to addressing the current high levels of homelessness and rough sleeping and, of course, the barriers faced by those who are in temporary accommodation and need a safe, secure home to live in. I recognise the financial pressures that hon. Members have highlighted; the soaring costs of temporary accommodation are placing huge strain on councils. I looked very closely at the correspondence between the previous Government and the leader of Eastbourne council that was shared with me, and I am grateful for the work that councils up and down the country have done.

In one of my local authorities, St Albans, we are at crisis point, and often it is families with children who lose out. The average waiting time is 31 weeks, but the average time for families with children is 43 weeks, because of problems with supply and financial pressures. We are also in an area where the cost of housing, including private housing, is very high. Does the Minister agree that where housing costs are higher, the impact on local authorities is very difficult to deal with, as they often subsidise the higher costs of private rent to try to support those families on the waiting list? We have to take that into account.

The hon. Member has highlighted some really important issues affecting the private housing sector—costs and supply—and the impacts that they have in different areas. I will come on to the action we have already started taking to make headway on those issues.

As we have heard, homelessness and rough sleeping have dramatically increased. In England, homelessness is now at record levels. In March this year, more than 117,000 households, including over 150,000 children, were living in temporary accommodation. In the hon. Member for Eastbourne’s constituency, on 31 March, 373 households and 419 children were living in temporary accommodation. It is shocking that children and families in this country in the 21st century are without a permanent place to call home, and have to live in horrific conditions where temporary accommodation is not of a decent standard. We all know of cases where that is deeply problematic.

I am very pleased that my hon. Friend is in this post, because she understands the real issues. We have this ridiculous situation where families in my constituency in east London are being sent to other parts of the country, putting pressure on the housing markets and causing issues there. This vicious circle is costing the taxpayer—and households, our schools and our communities—dear. I am sure that she is moving on to what solutions may be available, and she has our support in finding those.

I am incredibly grateful, and my correspondence box is piling up with the mix of issues that my hon. Friend points to. We need to work collectively to tackle these issues, because unless we deal with them in the round, one area’s issues will be transferred to another, which I know is not the answer. We need to address those issues, but it will take some time for us to gather the evidence and work with Members to tackle barriers.

The Minister has spoken about the importance of working collectively. Council leaders such as Stephen, who is in the Gallery, are very keen to do that. The Minister said that she has seen the correspondence from him and other council leaders. Would she be willing to meet a delegation of council leaders, including Stephen, to talk about the ideas and proposals in that correspondence, if she is not going to address them? But maybe she will, later in her speech. It will be really important to hear from Stephen directly about Eastbourne’s situation, and to go from there.

I will come on to what we hope we can do in the coming weeks and months. All temporary accommodation must be safe and suitable for the households affected. Interventions in place at the moment include our homelessness advice and support teams, who are drawn from local authorities and the homelessness sector to help local authorities address the placement of families in bed-and-breakfast accommodation for more than six weeks. However, I am clear that to turn this around, we have to tackle the root causes of homelessness and rough sleeping. We need to put in place lasting solutions, rather than quick fixes. For too long, we have seen the lack of a strategic approach.

The hon. Member has used his debate to highlight the devastating effects on his constituents. The story he shared is a powerful one that we can all relate to—one all our constituents have faced. Hon. Members have rightly raised the subject of the pressure on council finances. This Government are absolutely committed to resetting the relationship between local and central Government, and working in partnership in the interests of those living in temporary accommodation and who face homelessness. We want to work closely with the different nations, learning from each other about what works, as well as with regional and local government.

The Government will get councils back on their feet by providing multi-year funding settlements, ending the competitive bidding for pots of money and reforming the local audit system. We have heard from numerous councils that annual allocations are deeply problematic. The competitive nature of funding is really not helpful, and we need much more collaboration. We recognise that councils know their communities best, and with greater stability, they will be in a better position to enhance local services and facilities. I have seen many great examples of innovation and really effective work at local level, and we need to support those efforts and ensure that they are scalable. Local and national Government can learn from each other about the best models and best practice. How local government is funded is crucial in enabling councils to deliver the local services residents need, and it is also of course crucial in delivering on our missions. That is why we are committed to improving the local government finance landscape in this Parliament.

The hon. Member for Eastbourne and others have raised concerns regarding the different kinds of financing mechanisms and benefit subsidy payments for temporary accommodation. We appreciate that these are difficult times and understand the funding pressures local authorities are experiencing. The Department for Work and Pensions continues to keep rates for temporary accommodation subsidy under review and any future decisions on the levels of subsidy will be taken in the context of the Government’s missions, the goals on housing and the fiscal context.

Spending plans for the 2025-26 period will be set at the Budget on 30 October, as hon. Members know. Following the Budget, future funding allocations for homelessness and rough sleeping services will be confirmed later this year. We understand this is very challenging for the sector, and we are working closely with local authorities and want to continue to extend that work to ensure that we do all we can to relieve pressures and continue to support them.

With the benefits cliff edge, does the Minister agree that those in temporary accommodation should be given longer to be able to progress on to paying or having their benefits stopped, so that they can build up a bit of a nest egg? That way, when they move out of temporary accommodation, they are being set up for a chance to succeed in the tenancy by being able to furnish their homes right from the very outset, rather than having to start from scratch each time and not having any funds to call upon.

The hon. Member raises the important barriers to employment that I know are exercising my ministerial colleagues in the Department for Work and Pensions, not least as they look at tackling the child poverty challenge—another dimension to the housing crisis. He makes an important point, and I hope we can continue to get those inputs from colleagues as we make progress on the work, which I will come on to, that we will do in relation to the inter-ministerial taskforce on homelessness.

On the housing funding point, we recognise the challenges with the cost of temporary accommodation, and earlier this year the Government confirmed allocations for round 3 of the £1.2 billion local authority housing fund, which is expected to provide around 7,000 homes by 2026. Eastbourne is due to receive around £4.4 million, and this fund aims to ease local homelessness pressures, reduce spending on unsuitable bed and breakfast accommodation and provide safe and sustainable housing for those fleeing persecution.

I recognise that, as others have pointed out, there is more to do, but this is an important part of the funding settlement that is currently available and is necessary in dealing with the supply issue, although of course we have a wider agenda on housing supply. We will deliver the biggest increase in social and affordable house building in a generation; we will build 1.5 million homes over the next five years. We are also committed to abolishing section 21 no-fault evictions, preventing private renters from being exploited and discriminated against—the hon. Member for Eastbourne raised that and gave a powerful example from his constituency in his opening remarks. The Renters’ Rights Bill will give renters much greater security and stability so they can stay in their homes for longer. The issues around safety and the decent homes standard will be addressed through extending Awaab’s law so that it covers private landlords. This will significantly reduce the number of poor-quality privately rented homes and empower tenants to raise concerns. Issues around quality of housing are not addressed, and we need to make sure that that is tackled. We very much hope that the combination of provisions we have already started will allow us to begin to make progress quickly.

It is just over three and a half months—just more than 100 days—that we have been in power, but we are determined to tackle these issues. I know that some of the other issues that have been raised, such as the out-of-area placement of our constituents, are deeply damaging. Families are moved away from their networks, from schools, from health providers and from other support systems. We are clear that if a local authority places a household into accommodation in another local area, they are required by law to notify the local authority of that placement. We have to build homes in the areas where they are needed so that we can reduce the need for out-of-area placements. That is why we will keep our focus on the house building agenda. Unless we tackle the supply of housing—affordable and social housing, along with other kinds of housing—we will be stuck in this cycle, and nobody wants that.

It was important and powerful to hear the Minister reaffirm the legal obligation on local authorities to notify another local authority if they are placing folks in accommodation there. Brighton and Hove city council has for some years been going ahead with placements in Eastbourne, but notification has not always taken place. That has meant that Eastbourne borough council has not been in a position to understand the general support needs landscape and how best to support those people. Will the Minister share some words that might reassure Eastbourne council and remind Brighton council of its obligations?

I hope the hon. Member is reassured by the points I have made already, but going forward we need to look at how we can enable much more collaboration between councils and among regional government. The interconnectedness of these challenges means they have to be addressed collectively. That is why from the national Government perspective, we will soon initiate the inter-ministerial group, chaired by the Deputy Prime Minister. It will be working with Ministers across Government to take action on homelessness, looking at temporary accommodation, rough sleeping and the wider agenda. We will be working with the other relevant Departments to look at such issues as health and the benefits system. Those Departments have an important role to play if we are to bring an end to homelessness once and for all.

In that context, we are committed to ensuring that local government and regional government play their part, working with us, along with the charitable sector and the community sector. I have heard powerful stories of the work that faith organisations do to support those who face challenges around housing and homelessness. Their insights and their contributions need to be included as we develop solutions to tackle this problem.

The Minister listed a wide variety of Departments, but the Department for Education was not among them. Will she assure me that that is one of the Departments that she intends to co-ordinate with? I am sure that it is.

Absolutely. I was giving examples, not an exhaustive list. I have already met with colleagues, as has the Deputy Prime Minister; we work very closely with the Department for Education. There is a great deal of interest and enthusiasm at ministerial level, at official level and, we know, at local authority level and among colleagues across the House in working with us to develop a cross-departmental, cross-societal strategy that focuses on getting results. Of course, we need to deal with the immediate challenges, but we need a long- term strategy too.

I want to reiterate that we are absolutely committed to tackling the root causes. I hope that we can all take hope and heart from the extraordinary work that many organisations do in communities and constituencies up and down the country. We have seen the work done in local areas by local authorities and other agencies, with multi-agency approaches in healthcare and education, for example, and of course the work that many colleagues have done here in Parliament to campaign and raise awareness of the plight of those who face homelessness.

We have a real opportunity to get this agenda right, and in that spirit I welcome this debate. I really appreciate the turnout and the interest—Adjournment debates are normally attended by only a couple of people. It is crucial that we build alliances and use the insights of Members of Parliament, who—as I have found throughout my political career—are at the sharp end, trying to support their constituents. I hope that colleagues can see that there is a real openness in this Government to work together to tackle this challenge once and for all.

Question put and agreed to.