A London council leader has criticized government grants aimed at tackling homelessness as “simply inadequate.” Kam Rai, leader of Labour-run Redbridge, labeled the funding announced by Deputy Prime Minister Angela Rayner as a “mere drop in the ocean.”
The government revealed nearly £1 billion in funding to address homelessness, with London receiving nearly £80 million extra next year. However, Rai pointed out that Redbridge alone spent £52 million on temporary accommodation last year, highlighting the insufficiency of the new grant.
The funding comes as London boroughs collectively spend £4 million daily on housing homeless families, with a 68% increase in temporary accommodation costs over the past year. London Councils, representing all 32 boroughs, warned that councils are set to overspend by £270 million this year.
Rai also criticized a new restriction on how the Homelessness Prevention Grant can be used, with 49% required for prevention efforts rather than temporary accommodation. Temporary housing currently absorbs 80% of council grant funds.
Claire Holland, chair of London Councils, welcomed the funding increase but expressed concerns over the squeeze on temporary accommodation resources, exacerbating financial pressures for boroughs.
The growing crisis has pushed some councils to the brink of bankruptcy, with high social care and private rent costs adding to the strain. The Ministry of Housing, Communities, and Local Government reports a 16.3% rise in temporary accommodation use, with 123,100 households affected.
