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A national plan to end homelessness
How the government’s new homelessness strategy could impact temporary accommodation
STRATEGY
James McHugh
Senior Consultant, Campbell Tickell
James McHugh
Senior Consultant Campbell Tickell
Issue 83 | April 2026
The Government’s National Plan to End Homelessness sets out an ambitious long-term vision for everyone to have access to a safe, secure home. It features a compelling analysis of the temporary accommodation (TA) crisis and includes several new targets and initiatives which could make a meaningful difference. Yet, as pressures continue to mount at unprecedented pace, a key question is whether it provides sufficient support for local authorities, many already operating beyond capacity, to turn the tide of the TA crisis.
A system under severe strain
The scale of the challenge is stark. The Plan cites (then) record levels of TA, totalling 132,410 households and annual expenditure of £2.8 billion. Particularly concerning is the rise in B&B and nightly paid accommodation, where spending doubled in a single year, from £309 million to £620 million, and now accounts for almost half of total council expenditure on TA.
Behind these figures sit profound human consequences. Long stays in unsuitable or unstable TA are associated with poorer health outcomes, disrupted education and employment, increased safeguarding risks, and social isolation. The Plan provides a clear, systemic explanation of these consequences, acknowledging both the immediate harm and the long-term social costs of TA.
Prevention is better than cure
Three of the Plan’s five pillars focus on prevention: universal prevention, targeted prevention, and preventing crisis. Reducing TA clearly depends on minimising the number of households reaching crisis in the first place and reflects the old adage that ‘an ounce of prevention is worth a pound of cure’. The proposed ‘duty to collaborate’ which will require public institutions such as prisons, hospitals, and social care to work proactively to prevent homelessness, is a constructive step and may help address long-cited gaps between services.
The Plan reiterates commitments to increase long-term supply, most notably via the £39 billion Social and Affordable Homes Programme which will primarily focus on social rent. This represents a major step forward, though delivery will be gradual and subject to market capacity, planning, and economic uncertainty. Shifting the system towards prevention will also require sustained revenue funding to support councils to expand on successful early intervention initiatives and resource effective partnership working as we await new supply to come onstream.
Putting quality at the centre
‘Quality’ appears 55 times throughout the Plan – a strong indication that improving standards is a core priority. The Plan includes commitments to strengthen statutory protections, enhance suitability and safety expectations, and involve people with lived experience in service design and monitoring.
However, the gap between ambition and implementation is notable. Extending the Decent Homes Standard to the private rented sector (including TA) will not occur before 2035. This provides little solace for families currently living in overcrowded, unsafe, or poorly managed TA. To enforce improved standards in the meantime, councils will require additional revenue funding to monitor, inspect, and regulate effectively.
Ending B&B use for families
Perhaps the most noteworthy pledge is the national target to eliminate the unlawful use of B&B accommodation for families beyond the statutory six-week limit by 2029. This follows growing concern about the 2,070 families currently placed in such settings for extended periods, placements described as ‘both unlawful and deeply damaging’.
For local authorities, this presents both an opportunity and a challenge. While the commitment reflects a strong moral and legal imperative, achieving it will require increased capacity, including access to more self-contained and supported housing, and better prevention pathways.
Investing in supply and exploring new delivery models
The Plan (re)announces a fourth round of the Local Authority Housing Fund (LAHF), worth £950 million. This is the largest allocation to date and is expected to deliver up to 5,000 homes by 2030. These homes should provide councils with more stable, better value alternatives to nightly paid accommodation.
In addition to LAHF, the Plan signals an intention to develop partnerships with social impact investors and institutional funds, supported by the new National Housing Bank. This openness to broader financing models is welcome and could provide the much-needed additional capital to provide a wider range of options.
“Without fundamental reform of LHA, demand for TA will remain high, and prevention efforts will be undermined, despite the best intentions of the Plan.”
A missed opportunity
The Plan is remarkably silent on the issue of Local Housing Allowance (LHA), which is mentioned just once. It is widely recognised across the system that low LHA rates are a key driver of homelessness, while the archaic rules dictating subsidy limit councils’ abilities recover the full costs of providing TA.
Meanwhile, the inconsistent and ad hoc approach to uplifting and freezing LHA rates prevents solutions coming forward which are dependent on longer term rental certainty. Without fundamental reform of LHA, demand for TA will remain high, and prevention efforts will be undermined, despite the best intentions of the Plan.
