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Councils face £300mn shortfall in youth homelessness funding

1 min read Children's Services
English local authorities are facing an annual shortfall of £332 million in youth homelessness funding, economists have warned.
London has the biggest funding shortfall in youth homelessness, according to research. Picture: Adobe Stock/ upyanose
London has the biggest funding shortfall in youth homelessness, according to research. Picture: Adobe Stock/ upyanose

Newham Council, in London, was found to need as much as £32mn, with Liverpool, Hammersmith and Fulham, Cornwall, London boroughs of Ealing and Bexley needing in excess of £10mn, according to research published by youth homelessness charity Centrepoint.

Rising costs to meet obligations under the Homelessness Reduction Act (HRA) were found to be a key factor behind the shortfall, despite the government investing £2.4bn to tackle homelessness between 2022 and 2025.

Main duty costs came to an average of £23,629 per case, with 88% of this taken up by temporary accommodation. Costs were highest in London, with main duty costs in Kensington and Chelsea exceeding over four times the national average per case.

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