Why it matters: The increase reflects a national crisis that saw English councils spend £1.4 billion on temporary accommodation, with homelessness charities warning private providers are "cashing in" on the housing emergency by charging "eye-watering sums" for rooms.
The details: Ministry of Housing, Communities and Local Government figures show Ipswich Borough Council recorded about £2.1 million in spending towards temporary accommodation for the year to March – the difference between total outgoings and income – up from £1.7 million in 2023-24.
Across England, council spending on temporary accommodation jumped 31% when adjusted for inflation, reaching £1.4 billion. The most significant increase was in nightly paid, privately managed accommodation, which rose 92% to £620 million.
What they're saying: Councillor Alasdair Ross, Portfolio Holder for Housing, said councils nationwide experienced an average 25% increase in temporary accommodation spending, "largely due to an outdated central Government formula for reimbursing councils."
"Currently, councils have to pay private landlords the market rate rent for TA, but the Government formula is linked to 2011 rental rates, creating a funding gap," he said.
Mairi MacRae, director of campaigns and policy at Shelter, said: "While the housing emergency is draining billions in public funds, families across the country are paying the ultimate price. Money that should be helping them into a secure home is instead shelled out on grim temporary accommodation, just to keep people off the streets."
She added: "Private providers are cashing in on this crisis, charging eye-watering sums for rooms where children are forced to eat, sleep and do their homework on beds shared with siblings."
The bigger picture: Tom Hunt from the Local Government Association said councils are "having to stretch budgets further" and called for changes to reimbursement rules. John Glenton at Riverside, which provides accommodation for people affected by homelessness, said the figures show "immense and unsustainable" costs but do not reveal the human impact on families "often forced to share beds, and live in one single room without kitchen facilities."
What's next: Ipswich Borough Council plans to introduce a temporary accommodation policy in early 2026. The authority is using multiple strategies, including the Ipswich Lettings Experience Team to help private landlords find tenants, and Handford Homes, which will have completed more than 300 new homes by the beginning of 2026.
A Ministry of Housing, Communities and Local Government spokesperson said: "These figures are not good enough. We will build 1.5 million homes so that everyone has a secure and affordable place to live."
The bottom line: Rising temporary accommodation costs are squeezing council budgets nationwide, with Ipswich facing the same pressures as outdated government funding formulas fail to keep pace with current rental prices.
