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Housing Benefit: Temporary Accommodation

Answer

DWP pays local authorities a Housing Benefit subsidy for Temporary Accommodation cases. There are restrictions on the amount paid, including a subsidy cap which is the lowest of £500 per week in certain areas of London or £375 elsewhere, 90% of 2011 LHA rates, or the claimant’s Housing Benefit entitlement. These arrangements are designed to incentivise local authorities to ensure Temporary Accommodation is good quality and value for money.

We recognise the financial pressures that local authorities are experiencing. This Government has invested £1bn in homelessness and rough sleeping services this year (2025/26), a £316m increase on the previous year.

We want to encourage better investment into Temporary Accommodation stock up-front to minimise costs to local authorities and £950m was announced in the latest round of the Local Authority Housing Fund. This coupled with measures to strengthen local authorities’ financial position such as a new £39 billion Affordable Homes Programme and a 10-year rental settlement at Consumer Price Index + 1, will support local authorities in England to increase the supply of good quality Temporary Accommodation and drive down the use of costly bed and breakfasts and hotels.

We will continue to work with MHCLG as part of the Homelessness and Rough Sleeping Inter Ministerial Group.

Secondary information

Type

Written question

Reference

93800

Session

2024-26

Subjects

Housing benefit Local housing allowance Temporary accommodation

Link

View this Written question on www.parliament.uk