New data released today (Thursday 17 September) shows that local authorities in England have spent a record £2.9 billion over the past year on providing temporary accommodation to households experiencing homelessness. This spending has nearly doubled in the past five years, increasing from £1.6 billion in 2020/21.

The figures show:

• Councils spent £2.9bn on temporary accommodation from April 2025 to March 2026.
• The amount spent on temporary accommodation has increased by 4% from £2.8bn the previous year.
• 64% of this total spend (£1.9bn) was on nightly paid accommodation, hostels and bed and breakfasts – the least suitable form of temporary accommodation – with spend on these forms of temporary accommodation remaining steady from the previous year.
• In the last five years, the total spent by local authorities in England on housing and homelessness services has increased by 88% (from £1.6bn in 2020/21) - reaching a total £13.0bn spent since 2020/21.

This comes as new figures released last month revealed a record 135,580 households are in temporary accommodation, often for months and sometimes years, instead of a more permanent and stable home.

Julie from Oxford spent nine months living in temporary accommodation: a single hotel room with her then 16-year-old son, with no kitchen. Julie's diabetes and mobility worsened, while her son, who has additional needs, struggled without a space of his own.

Today, life looks very different. Julie has a home where she can cook healthy meals, and she says her health has improved immensely. Her son now has stability and is in his third year at college.

Julie says: "When my son and I lived in temporary accommodation, I felt so lost and didn't know what to do. There was no support and the money from social services wasn’t enough to cover costs. We were forced to share a tiny one bed room, with nowhere to cook. We weren't even allowed a toaster, so we lived on ready made sandwiches and pot noodles.

"People think you are safe because you aren’t living on the streets, but this wasn't a decent, safe home. Temporary accommodation costs the public billions and is a huge personal cost for people too.

"Having a place to call home is so important for both your physical and mental health. When you have a home, your stress is gone and you know that tomorrow you’re going to be warm and safe. If you’re living on the streets, sofa surfing or in unstable accommodation you don’t know what tomorrow is going to bring. But when you're living in your own home, you feel so proud.

"There are a lot of people in this country who need help and they’re not getting it. I hope things start to change so people's lives can be changed just like ours was."

Responding to today’s figures, Matt Downie, Chief Executive at Crisis, said:

“These new figures show how desperately we need a culture shift away from ruinously expensive temporary fixes for homelessness, towards an approach that prioritises stable, permanent homes. There has been a seismic shift in the way homelessness has been prioritised under this new government, and we want to see this momentum continued  to secure long term changes where we prioritise ending homelessness not managing it. 

“For far too long we have relied heavily on costly sticking plaster solutions, with councils now spending almost three billion pounds each year on temporary accommodation that only traps people in a cycle of insecurity. With sky-high rental costs and a chronic shortage of affordable homes, people across the country are being pushed to breaking point.  

“Behind today’s figures are families and individuals whose lives are being put on hold while they're forced to spend months or even years trapped in temporary accommodation. What we’re facing isn’t inevitable. It’s the result of a system that isn’t working properly – and it’s within our power to change it. 

“To prevent homelessness rising further, the government must urgently unfreeze housing benefit so it reflects the true cost of private renting. With the right action, we can finally start to see this overreliance on temporary accommodation fall and ensure everyone has access to the vital foundation that is a secure home.”