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Your weekly London local government update

08 Oct 25

Borough homelessness costs soar to £5.5 million a day

New data published last week show London’s homelessness crisis continues to escalate, with boroughs now spending £5.5 million a day on homelessness in 2024/25 – up from £4.2 million a day in 2023/24. The bulk of that spending is the cost of providing temporary accommodation for homeless families – now almost £5m a day in the capital.

Net current expenditure on homelessness in London has risen by 42 per cent since last year, compared to a 16 per cent increase across the rest of England.  

Cllr Claire Holland, Chair of London Councils ( [link removed] ), said: “London boroughs are now spending a staggering £5 million a day on temporary accommodation – a stark reflection of the scale of the capital's housing crisis, which continues to worsen.

“This underlines the importance of using the most up-to-date data in the forthcoming reforms to local government finances and ensuring measures of deprivation properly reflect housing costs and the impact of homelessness.

“After more than a decade of structural underfunding, rising costs and growing demand, it is vital that boroughs receive funding which genuinely reflects the level of need in the capital. We want to work with the government to address our concerns with the Fair Funding Review so that we can help restore stability to council finances and prevent more boroughs being plunged into crisis.”

Conservative conference

London Councils were in Manchester for the Conservative Party Conference ( [link removed] ) this week to discuss the topic: London’s Future: Where and How can Conservatives Win? Speakers at the event will included:

Mark Wallace, CEO at Total PoliticsCllr Elizabeth Campbell, Vice Chair of London CouncilsDavid Simmonds MP, Member of Parliament for Ruislip, Northwood and Pinner and Shadow Housing, Communities and Local Government MinisterTom Turrell AM, London Assembly Member for Bexley and BromleyAmeet Jogia, Conservative Party Candidate for Hendon at the 2024 General ElectionJason Perry, Mayor of Croydon

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Case studies in prevention

To celebrate 60 years of the London boroughs, each week, London Councils is sharing prevention case studies highlighting how preventative action by London boroughs is helping to save money and improve the lives of their residents.

This week, our case study is from Richmond, where the council is using the Low Income Family Tracker (LIFT) to offer its vulnerable residents targeted support.

You can read Richmond's case study in full on our LinkedIn page ( [link removed] ) and all of our prevention case studies here ( [link removed] ).

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In the news this week...

London councils spend £5.5m a day on homelessness crisis
The Standard ( [link removed] )
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London risks becoming 'childless city' as families pushed out
The Times ( [link removed] )
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What the formula for the Fair Funding Review will mean for council homes

Inside Housing ( [link removed] )
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Homelessness costs soar in London

SWLondoner ( [link removed] )
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You can find contact details for every councillor in London in our London Government Directory here ( [link removed] ).

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