Westminster Hit by Soaring Costs as It Struggles to Cope with Homeless

After announcing that it will spend a record £41.8m on providing housing and temporary accommodation, one of Britain’s wealthiest boroughs has become the new centre of the homelessness.

Last year temporary accommodation cost the council £25.5m. Considering the money that will be spent this year the bill for homelessness will increase by 63.5%, according to the cleaners in Westminster. Therefore, cuts to housing benefit are having a reverse effect on costs for Westminster Council. The controversy here is that it will cost Westminster more to place thousands of people in temporary accommodation, including hotels, than it has saved through the government’s welfare clampdown. Official sources state that the Council has saved ‘around £40m’ from to the introduction of restrictions to housing benefit in 2011. Figures show that since 2009, it has cost Westminster £135.83m to accommodate homeless people. The £41.8m homeless spending will means it will much more money will be used housing vulnerable households than any other local authority in Britain.

06/26/13