Camden Council is set to standardise temporary housing rents to alleviate financial pressures and ensure fair access to housing support. The decision, made during a Resources and Corporate Performance Scrutiny Committee meeting on Monday 14 July 2025, aims to streamline rent calculations for temporary accommodation (TA) and optimise Housing Benefit (HB) claims, ultimately intended to optimise rent recovery and reduce financial pressure on the Council's Housing Revenue Account (HRA) in light of the growing temporary accommodation overspend.

The move will standardise all TA rents at 90% of the 2011 Local Housing Allowance (LHA) rate. According to the Update on the Council's Medium Term Financial Position, this change will primarily affect properties acquired through the Temporary Accommodation Purchase Programme (TAPP) and address inconsistencies in the nightly paid sector. While the report indicates that most households should be unaffected because rent charged in nightly paid TA is already at 90% of the 2011 LHA rates, it also acknowledges that there may be some cases where the rent charged is lower than the amount that can be claimed from HB.

Graph showing Camden Council's funding and expenditure, both actual and projected, from 2013/14 to 2031/32.
Graph showing Camden Council's funding and expenditure, both actual and projected, from 2013/14 to 2031/32.

The council has pledged to support residents through the transition. A report included in the Public Reports Pack stated that all households affected will be contacted by the Money Advice Service to assess their finances and ensure they receive appropriate assistance, including help with Housing Benefit applications and access to Discretionary Housing Payments (DHPs).

The decision comes as Camden Council faces significant financial challenges, including a General Fund overspend of £22.8m and rising demand for temporary accommodation. The Insight Learning and Impact Report Quarter 4 End of Year 2024-25 highlighted the need for the council to protect its financial resilience while continuing to provide essential services.

To mitigate potential negative impacts, particularly on vulnerable groups, an Equality Impact Assessment (EqIA) was conducted. The Appendix C - Equality Impact Assessment Form outlines measures to address any disproportionate effects on protected groups, such as younger households or those with disabilities.

Camden Council also aims to ensure that the temporary accommodation provided meets a minimum standard of quality and suitability for residents, especially given the financial pressures. The Leader's Annual Report 24-25 mentions a Housing Transformation Programme to ensure compliance and financial viability, with the ambition to become a leading social landlord. The program aims to make housing services relational, accessible, data-driven, and connected to tenants' aspirations.

The Resources and Corporate Performance Scrutiny Committee also discussed the council's broader financial strategy and work programme for the coming year. The Work Programme July 25 outlines the committee's agenda for the 2025/26 municipal year, with a focus on corporate priorities and community concerns.

As part of the meeting, the committee reviewed the Leader's Annual Report 24-25, which provided an overview of the council's achievements and priorities. The report emphasised a continued commitment to tackling inequality and delivering for the people of Camden.