How is temporary accommodation provided to homeless households in England?

Temporary accommodation (TA) is arranged by local authorities in England to meet legal duties towards some people experiencing homelessness.

Local authorities are not required to accommodate everyone who is homeless. Local authorities are legally obliged to provide TA in some situations. In others, they can choose to arrange TA. The circumstances in which local authorities must provide TA are set out in legislation.

Accommodation must be suitable. There are specific rules on what local authorities must consider when deciding if TA is suitable.

Applicants in TA are usually responsible for all related costs. Some applicants can receive help towards their TA costs through the benefits system. Local authorities often face shortfalls between the amount they spend on TA and how much they can recover. Authorities can use multiple funding sources to help cover their TA costs.

Local authorities’ duties to provide temporary accommodation

The homelessness duties of local housing authorities are set out in part 7 of the Housing Act 1996 (the 1996 act). Authorities must also follow the statutory homelessness code of guidance and their own policies.

Interim accommodation

Authorities have an interim duty to accommodate under section 188 of the 1996 act if they have “reason to believe” an applicant may be homeless, eligible for assistance (based on UK residence and immigration status) and in priority need. This duty applies while enquiries are carried out. Priority need includes households with dependent children, pregnant women, people vulnerable due to age, disability or other reasons, and people who are homeless because of emergencies or domestic abuse.

Intentional homelessness

If an applicant in priority need is found to be intentionally homeless, the authority must provide TA for a period that gives them a reasonable opportunity to secure their own housing. Authorities must also help the applicant to find their own housing.

Local connection referrals

Where an applicant is homeless and is, or appears to be, in priority need but lacks a local connection, their case may be referred to another authority. The referring authority must provide TA until the referral outcome is confirmed.

Main housing duty

If efforts to prevent or relieve someone's homelessness fail, and the applicant is eligible, unintentionally homeless and in priority need, the authority owes the main housing duty under section 193 of the 1996 act. This means the local authority must provide suitable TA until the duty ends, for example when a suitable long-term offer is accepted.

Authorities also have discretionary powers to provide TA, for example to prevent rough sleeping or pending a review or appeal of a homelessness decision.

Suitability of temporary accommodation

Accommodation provided under homelessness duties must be suitable for a household. Suitability is assessed on a case-by-case basis, considering factors such as health needs, affordability, location and standards. Accommodation must not contain any category 1 hazards under the Housing Health and Safety Rating System.

Out-of-area accommodation

Authorities should, as far as practicable, secure accommodation within their own area. If this is not possible, they should aim to place households as close as possible to their previous location and maintain links with schools and essential services. They must notify the receiving authority within 14 days of the placement.

For families with school-aged children, authorities should liaise with the receiving authority to minimise disruption to education. The Supreme Court has emphasised that suitability for children is a key consideration.

The Labour government’s cross-government strategy, A National Plan to End Homelessness, was published on 11 December 2025. The strategy includes several measures that are intended to improve out-of-area placement practice.

Children and young people

Bed and breakfast (B&B) accommodation is not suitable for households with dependent children or pregnant women, except in emergencies and for no more than six weeks. B&B accommodation includes any accommodation where facilities are shared with other households unless the accommodation is owned or managed by a local housing authority, private registered provider, or a voluntary organisation; or provided in a private home (such as lodging or as part of a sponsorship arrangement).

B&B accommodation is also unsuitable for: 16-and-17-year-olds, even in an emergency; and care leavers under 25, except in exceptional circumstances.

Accommodation for households with children under two must have space for a cot.

Authorities must keep accommodation suitability under review, as accommodation that is acceptable in the short term may become unsuitable in the longer term. Applicants can request a review of most suitability decisions made under the act. However, there is no right to a review of the suitability of interim accommodation. The suitability of interim accommodation can only be challenged through judicial review.

How is temporary accommodation funded?

Applicants in TA are expected to contribute towards the costs of their accommodation, typically through rent or a licence fee, and in some cases through a service charge. Some applicants may be entitled to support with these costs through the benefits system.

Where an applicant receives help with their TA costs through Housing Benefit (HB), the local authority pays the claimant’s entitlement because HB is locally administered. However, for HB paid on TA, the amount that authorities can reclaim from the Department for Work and Pensions is often not enough to cover their actual costs. Local authorities can cover shortfalls in TA costs through a combination of sources, which are outlined below.

The government will consider “the best way to sustainably fund good-quality temporary accommodation” as part of its National Homelessness Strategy.

Local Government Finance Settlement

The Local Government Finance Settlement sets out the amount of funding available to local authorities to pay for services for the financial year, including non-ringfenced grants that can be used for TA. The government is reforming the local government funding system through its Fair Funding Review 2.0.

Housing Benefit subsidy system

Housing Benefit (HB) is administered locally by councils. Where an applicant qualifies for HB support with their TA costs, the council pays the applicant’s HB entitlement and then reclaims the costs from the Department for Work and Pensions. Not all TA costs are covered though the HB system because subsidy levels have been frozen since 2011, contributing to financial pressures on local authorities, particularly in high-cost areas.

Bodies representing councils have warned that the ‘subsidy gap’ is contributing to “immense” financial pressure on local authority finances. They have called for TA subsidy rates to be increased to reflect actual costs.

Homelessness Prevention Grant

The Homelessness Prevention Grant (HPG) was introduced in 2021 as a ringfenced (protected) grant to reflect homelessness pressures. Authorities can use part of this funding to offset TA costs.

The government has confirmed that, for the financial year 2025/26, 49% of councils’ HPG allocation will be ringfenced for prevention and relief activities, including staffing. The Commons Housing, Communities and Local Government Committee has highlighted how the ringfence will have unequal effects on areas that rely most heavily on their HPG to help cover their TA costs.

From 2026/27, TA funding will no longer be part of the HPG. Instead, it will form part of councils’ core spending power through the Local Government Finance Settlement, specifically within the Revenue Support Grant. The Revenue Support Grant is the main government grant providing general funding to local authorities.

Further reading

The Commons Library briefing Temporary accommodation in England: Issues and government action (December 2025) summarises stakeholder views on the issues with providing TA, such as growing costs, out-of-area placements and poor conditions. It also provides information on what the government is doing to address the issues.