Worsening homelessness pressures in the capital mean more than 100,000 children in London will spend Christmas in temporary accommodation, London Councils has warned.
The cross-party group says this is the highest-ever number and that the capital is grappling with a “homelessness emergency”.
London Councils’ analysis of government homelessness data reveals [1]:
An estimated 210,000 Londoners will be homeless and living in temporary accommodation on Christmas Day. This equates to around one in every 50 residents of the capital.
The estimated figure includes 102,000 homeless children – an 8% increase since last year, and a 35% increase compared to 2021. Based on average class sizes in the capital, London Councils estimates there is at least one homeless child in every London classroom.
London faces the most severe crisis in the country and accounts for over half of all homeless households in England.
London Councils highlights concerns about the impact of homelessness on children, who are likely to experience poorer outcomes in terms of health and education.
The group also warns of the unsustainable pressure on town hall finances in the capital. London boroughs collectively spend £5.5m every day on homelessness (the vast majority of which – around £5m – goes towards temporary accommodation provision).
The chronic shortage of affordable housing in the capital is driving up homelessness but also the costs incurred by boroughs when securing temporary accommodation. London Councils says the average cost of temporary accommodation in the capital has risen by 75% over the last five years, compared to a 23% increase in market rents over the same period.
London boroughs are working together to tackle homelessness, including through the Ending Homelessness Accelerator Programme announced recently with the Mayor of London. Through a strong partnership between City Hall, London boroughs, and national government, the Ending Homelessness Accelerator Programme aims to ensure that public services and resources are joined-up and available to prevent homelessness early and sustainably, costs are reduced and improvements are made to the supply and quality of temporary and supported housing.
However, boroughs are also clear that in the face of such severe challenges more national policy support is required.
Cllr Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said:
“It is heart-breaking that so many children in the capital are homeless and set to spend Christmas in temporary accommodation.
“London is the epicentre of a national homelessness crisis that has been years in the making, and the situation here is nothing less than an emergency. The impact on children is devastating and the pressures on local services are unsustainable.
“Boroughs are working hard to support homeless Londoners as best we can, but we need more action at a national level too. We welcome the government’s new homelessness strategy and its focus on a cross-departmental approach to tackling this crisis. It is vital this delivers the policy changes and resources we need to turn the tide on homelessness in the years ahead.”
London Councils is committed to working with the government on reducing homelessness. Boroughs also welcomed the government’s decision earlier this year to extend the Local Authority Housing Fund (which provides funding to councils to buy homes for use as temporary accommodation), the uplift to the Homelessness Prevention Grant received by London boroughs, and up to £11.7bn of investment in housebuilding in the capital through the Social and Affordable Homes Programme over the coming decade.
As policy priorities for making faster progress in reducing homelessness, London Councils is seeking:
Help for meeting London’s spiralling temporary accommodation bill. The amount the government pays councils through the welfare system to subsidise temporary accommodation has been frozen since 2011, even though housing costs have increased hugely in the subsequent 14 years. Insufficient funding means temporary accommodation is more likely to be poor quality and further away from the borough, representing worse value for money, poorer outcomes for families, and less funding to invest in other services that all residents rely on. Increasing the subsidy so it is more in line with today’s housing costs is vital for sustaining boroughs’ finances and enabling them to keep supporting homeless Londoners.
A boost to Local Housing Allowance rates across the board. Local Housing Allowance (LHA) is the welfare measure for low-income households with a private landlord. LHA rates need to increase more widely to reflect the true cost of private rents. Too many low-income Londoners are struggling to find homes within LHA limits, putting them at risk of homelessness and adding pressure to local services.
Additional capital funding for councils to build or buy homes. Building on positive initiatives like the Local Authority Housing Fund, the government should further increase boroughs’ capital funding to build or acquire properties. This would improve both the quality and value of temporary accommodation, particularly by reducing local authorities’ reliance on a sometimes volatile private rented sector, while also helping to meet long-term housing needs.
Action to sustain social housing finances and enable expanded delivery of homes for social rent. London’s social housing sector faces an ongoing financial crisis, with boroughs being forced to plan cutbacks in their council housing budgets at a time when additional investment is desperately needed. London Councils is calling for more support, especially through the government’s upcoming decision on social rent policy and setting a ‘rent convergence’ rate. To ensure fairness and ensure boroughs have the resources they require to grow social housing provision in the capital, London Councils is asking the government to enable a social rent ‘convergence rate’ of at least £3 per week from April 2026.
