A record number of children are living in B&Bs beyond the legal limit as England’s homelessness crisis pushes councils to breaking point.
MPs said there is a “dire need” for housing reform, with the lack of affordable homes forcing cash-strapped local authorities to haemorrhage their funds on temporary accommodation.
The “crisis situation” means there is less money in the pot to focus on homelessness prevention, the cross-party Public Accounts Committee (PAC) said.
Councils are instead having to prioritise short-term solutions which can include putting families in bed and breakfasts – the fastest rising temporary accommodation type over the past decade, a Sky News analysis of government data found.
Temporary accommodation is meant to be a short-term solution for people who are homeless while they wait for more suitable and long-term housing options.
But the rising number of homeless households in England, driven by a shortage of social or otherwise affordable housing to move on to, means that increasingly this fix is anything but temporary.
A recent Sky News investigationfound that children in some parts of England are spending as long as five-and-a-half years on average in temporary accommodation.
Length of stay has increased significantly in many areas since 2021, with particularly long stays in London and the South East.
B&B use was the fastest rising temporary accommodation type over the past decade, rising fourfold from 4,400 households in 2014 to a record high of 18,400 by 2024, according to government figures.
The data shows 6,000 of these households included children, of which two in three had been living there for longer than the 6-week legal limit.
All of this is cripplingly expensive for councils. B&Bs, meant to be reserved for emergencies only, were the largest single spending category in council homelessness budgets in 2024, at £723.9m.
This is more than triple the amount spent in 2014, which was £218m adjusted for inflation.
Overall, temporary accommodation costs to local authorities have risen from more than £1.6bn in 2022-23 to around £2.1bn in 2023-24, the PAC said.
‘Crisis situation’
The PAC is calling for a clear strategy and stronger support for local authorities to address what it called “a crisis situation”.
Despite there being an overarching homelessness strategy for each of the devolved nations, England does not have one.
Committee chairman Sir Geoffrey Clifton-Brown said this had left local authorities “attempting to save a sinking ship with a little more than a leaky bucket”.
MPs also urged the government to justify its Local Housing Allowance (LHA) rates, which calculate housing benefit for tenants renting from private landlords.
The committee said 45% of households in receipt of the benefit face a shortfall between what they receive from the government and what they are being asked to pay in rent, and the issue is “exacerbated by the lack of affordable housing”.
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2:36
What are Labour’s housing plans?
Sir Geoffrey said: “My committee is deeply concerned by the number of people currently being housed in sub-standard, overpriced and at times, wholly inappropriate accommodation, sometimes a long way from their previous home.
“A lack of affordable housing, a focus on short-term solutions and no clear strategy to tackle this issue have left us with thousands of families in deeply troubling circumstances.”
He added: “Local authorities find themselves at breaking point as they haemorrhage funds to cover the rising costs of housing families in temporary accommodation.
“We are calling for an overarching strategy that addresses the need for better connectivity across government departments to tackle the root causes of this crisis.
“Without one, we fear this will remain an issue into which money is simply poured, without effectively tackling the blight of homelessness.”
Sir Keir Starmer has said former Tory ministers have “serious questions to answer” about how the names of Afghans who worked with UK forces were exposed.
Nearly 7,000 Afghan nationals are being relocated to the UK after their names were accidentally sent in an email in February 2022, when Boris Johnson was prime minister, but the leak was only discovered by the British military in August 2023, when Rishi Sunak was PM.
A super-injunction, preventing the reporting of the mistake, was imposed that year in an attempt to prevent the Taliban from finding out about the leak.
The Conservative government at the time then started transporting thousands of Afghans to the UK in secret as they were in danger.
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3:56
Victim of Afghan data breach speaks to Sky
Kicking off Prime Minister’s Questions, Sir Keir said: “Ministers who served under the party opposite have serious questions to answer about how this was ever allowed to happen.
“The chair of the defence committee has indicated that he intends to hold further inquiries.
“I welcome that and hope that those who are in office at the time will welcome that scrutiny.”
The data breach saw a defence official accidentally release details of almost 19,000 people seeking to flee Afghanistan after the return of the Taliban.
Conservative leader Kemi Badenoch avoided mentioning the data breach, but Lib Dem leader Sir Ed Davey said it was “shocking” how it had been kept secret for three years.
Sir Ed said the prime minister will have the Lib Dems’ support if he decides to pursue a public inquiry.
Mr Healey’s Tory predecessor, Sir Ben Wallace, said he makes “no apology” for applying for the initial four-month injunction and insisted it was “not a cover-up”.
The scheme, which had been kept under wraps until yesterday, has so far cost hundreds of millions of pounds.
However, the total cost to the taxpayer of existing schemes to assist Afghans who are deemed eligible for British support, as well as the additional cost from the breach, will come to at least £6bn.
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He said: “I’m really deeply uncomfortable with the idea that a government applies for a super-injunction.
“If there are any [other] super-injunctions in place, I just have to tell you – I don’t know about them. I haven’t been read into them.
“The important thing here now is that we’ve closed the scheme.”
Mr Healey was informed of the breach while in opposition, and earlier this year he commissioned a review that led to the injunction being lifted.
He said “accountability starts now” and added Labour had to deal with the risks, court papers, intelligence assessments and different schemes when they came to power last summer before they could lift the injunction.
The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.
The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.
That was up from the 3.4% rate seen the previous month. Economists had expected no change.
ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.
“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”
A key driver of food inflation has been meat prices.
More from Money
Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.
Image: Beef has seen the biggest percentage increase in meat costs. Pic: PA
High global demand alongside raised production costs have been blamed.
But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.
“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”
It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.
Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”
Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.
“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”
The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.
Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.
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8:30
Is the cost of living crisis over?
Most are still reeling from the effects of high energy bills.
The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.
Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.
The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.
The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.
That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.
Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.
“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.
“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”
An Afghan man who worked for the British military has told Sky News he feels betrayed and has “completely lost (his) mind” after his identity was part of a massive data breach.
The man, who spoke anonymously to Sky News from Afghanistan, says he worked with British forces for more than 10 years.
But now, he regrets working alongside those troops, who were first deployed to Afghanistan in 2001.
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1:59
Afghans being relocated after data breach
“I have done everything for the British forces … I regret that – why (did) I put my family in danger because of that? Is this justice?
“We work for them, for [the] British, we help them. So now we are left behind, right now. And from today, I don’t know about my future.”
He described receiving an email warning him that his details had been revealed.
He said: “When I saw this one story… I completely lost my mind. I just thought… about my future… my family’s.
“I’ve got two kids. All my family are… in danger. Right now… I’m just completely lost.”
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The mistake by the Ministry of Defence in early 2022 ranks among the worst security breaches in modern British history because of the cost and risk posed to the lives of thousands of Afghans.
On Tuesday, a court order – preventing the media reporting details of a secret relocation programme – was lifted.
Defence Secretary John Healey said about 6,900 Afghans and their family members have been relocated or were on their way to the UK under the previously secret scheme.
He said no one else from Afghanistan would be offered asylum, after a government review found little evidence of intent from the Taliban to seek retribution.
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But the anonymous Afghan man who spoke to Sky News disputed this. He claimed the Taliban, who returned to power in 2021, were actively seeking people who worked with British forces.
“My family is finished,” he said. “I request… kindly request from the British government… the King… please evacuate us.
“Maybe tomorrow we will not be anymore. Please, please help us.”