Slough council spends £32m on temporary housing

Slough Borough Council said the issue was being faced by councils across the country

A council that saw its bill for temporary accommodation climb to £32m last year has said it is in the "eye of the storm" for housing costs.

Slough Borough Council, which effectively went bankrupt in 2021, has so far only been able to claim back £20m of the bill from the government.

The authority's housing director said about 50 people per week were approaching it seeking temporary housing.

A government spokesperson said it was committing £1bn to "prevent rises in the number of families in temporary accommodation".

The Local Government Association said councils were facing a combined £76m shortfall in temporary accommodation budgets across the UK.

Slough council's bill has risen sharply each year since 2021, when its spending on housing families in need of immediate shelter was about £3.8m.

Temporary accommodation, such as hotels, hostels or caravans, is organised by local authorities for those who lack a permanent home.

Pat Hayes, council executive director of housing and properties, said the issue was a national problem, compounded by the town's proximity to London.

"At the moment we're getting 50 people a week knocking on our door, asking for housing," he said.

"These are all people being evicted from the private rented sector because they can't pay the bills or the landlords don't want to rent to people anymore, they want to sell, people moving from West London out to Slough.

"We're right in the eye of that storm as somewhere that is a little bit cheaper than London and considerably cheaper than the rest of Berkshire and Buckinghamshire.

"It's going to need a national solution from government."

The Housing Benefit subsidy used to pay councils back in full for money spent on temporary housing.

However, in 2011 the subsidy was changed to be no longer adjusted for inflation, leaving some councils out of pocket.

Currently Slough council's gap between the money spent and the money reclaimed for the 24/25 tax year is £12m.

It is still in the process of claiming the remaining money back and has two years to claim.

Pat Hayes, council executive director of housing, said the issue was compounded by the town's proximity to London

A government spokesperson said: "The levels of homelessness in this country are unacceptable.

"That's why we are making a £1bn investment in homelessness and rough sleeping services this year - a £233 million boost from last year - to prevent rises in the number of families in temporary accommodation and help to prevent rough sleeping.

"We continue to keep the rates used for Housing Benefit subsidy under review and are exploring the impacts of subsidy rates on local authorities."