Yesterday, Rachel Reeves made history as the first female chancellor to present a budget before Parliament. This budget is significant not only for its highest tax increases on record but also for its emphasis on tackling the growing crisis of households in temporary accommodation and rough sleeping.
The chancellor announced an additional £233 million in funding for homelessness prevention in 2025/26, bringing the total to £1.1 billion. This increase in funding during a time when other departments face cuts demonstrates the government’s commitment to addressing the acute housing crisis. Furthermore, announcements regarding additional funding for affordable housing, a £5 billion investment in house-building, and changes to right-to-buy receipts indicate a comprehensive approach to the challenges contributing to the rise in temporary accommodation.
Notably, this budget is the first to explicitly mention temporary accommodation alongside rough sleeping. Previous governments often framed the issue as “homelessness and rough sleeping,” leaving those in temporary accommodation overlooked. A quick review of the budget document reveals "temporary accommodation" was mentioned five times, compared to "rough sleeping" four times. This shift signifies that the government is responding to calls from Justlife and others in the sector to prioritise those in temporary housing.
We look forward to more details on the £233 million funding and how it will be utilised to prevent increasing numbers in temporary accommodation. Currently, many local authorities are using their prevention funds simply to maintain this flawed system, rather than preventing homelessness. The details regarding the full £1.1 billion in 2025/26 will be crucial for understanding how we can effectively change this dynamic.
Finally, we await information on phase two of the spending review, which we hope will outline a strategic long-term plan to address the immediate and systemic challenges facing those in temporary accommodation. While this focus is promising, urgent action remains necessary; there are still 117,450 households and 151,630 children living in unsafe and unhealthy conditions in temporary accommodation. The tragic deaths of 55 children in the past four years and 501 individuals in 2023 highlight the critical need for improvement. This budget offers a glimmer of hope, and we are eager to collaborate with the government to create meaningful change.
