"Private providers are cashing in on this crisis": Milton Keynes Council spending more on homeless accommodation as costs rise
The council spent more towards temporary homeless accommodation in Milton Keynes last year as the costs increased further across the country.
Figures from the Ministry of Housing, Communities and Local Government show that Milton Keynes Council recorded about £11.5 million in net spending – which is the difference between the total outgoings and income – towards temporary accommodation for the year to March.
The amount was a 4% increase from the £11 million net spending in 2023-2024, not adjusted for inflation.
Homeless charity Shelter warned private providers are "cashing in" on the housing crisis by charging "eye-watering sums" for rooms.
Council spending towards temporary accommodation has risen further across
England. In the year to March £1.4 billion was spent, up from £1.1 billion the year before.
When adjusted for inflation, it marked a 31% increase in net spending.
Net spending on nightly paid, privately managed accommodation saw the "most significant increase", the MHCLG said, standing at £620 million in the year to March. It was up 92% from an inflation-adjusted £323 million in the previous year.
Mairi MacRae, director of campaigns and policy at Shelter, said: "While the housing emergency is draining billions in public funds, families across the country are paying the ultimate price.
"Money that should be helping them into a secure home is instead shelled out on grim temporary accommodation, just to keep people off the streets."
She added: "Private providers are cashing in on this crisis, charging eye-watering sums for rooms where children are forced to eat, sleep and do their homework on beds shared with siblings."
She called on the Government to set out a "clear overall target for the delivery of social rent homes".
Spending on hostels was just over £36 million, up 21% from the previous year. On the other hand, bed and breakfast accommodation was down very slightly from 2023-24, costing nearly £400 million.
Tom Hunt, from the Local Government Association, said the figures show how "local authorities are having to stretch budgets further".
He called for changes to the way councils are reimbursed by the Government for temporary accommodation costs, saying current housing benefit reimbursement rules are "outdated".
He said: "Councils must pay landlords according to current market rates whilst reimbursement for councils is linked to 2011 rental rates."
John Glenton, at Riverside, which provides accommodation for people affected by homelessness, said the figures show the "immense and unsustainable" cost councils are facing, but do not reveal the human impact.
He said: "However, this spending does not show the immense toll that living in temporary accommodation has on families who are often forced to share beds, and live in one single room without kitchen facilities, leaving families deprived of sleep and the ability to make a warm, healthy meal."
A spokesperson for the MHCLG said: "These figures are not good enough.
"We will build 1.5 million homes so that everyone has a secure and affordable place to live.
"And as a first step to get on track to ending homelessness once and for all we’re spending £1 billion on vital services."