English councils spend record £2.9bn on homelessness services

English local authorities spent a record £2.9bn on homelessness services and temporary accommodation during the year ending April 2026. This represents a 4% increase from the previous year and an 88% rise over the last five years, totaling £13bn in expenditure since 2021.

Approximately 65% of this spending, or £1.78bn, was directed toward private temporary accommodation, including hostels, bed and breakfasts, and nightly-paid self-contained units. The use of B&Bs specifically rose from £711m to £822m, despite government pledges to reduce reliance on such settings.

Data from the Ministry of Housing, Communities and Local Government (MHCLG) also highlights that a record 135,580 households, including 177,530 children, were living in temporary accommodation as of March 2026.

Advocacy groups, including Shelter, have criticized the current approach, stating that the government is “treating the symptoms of the housing emergency, without addressing its cause.” Shelter has called for the government to unfreeze housing benefits and address the housing debt preventing councils from building social rent homes.