Westminster City Council is grappling with a surge in homelessness applications, leading to increased compensation payouts for unsuitable temporary accommodation.
The council's General Purposes Committee addressed the issue at a meeting on Wednesday, where they approved £66,250 in compensation payments to 19 service users. These payments, averaging £3,487 per person, were primarily due to extended stays in hotel accommodation lacking self-contained facilities.
According to a report presented to the committee, Westminster has seen a dramatic rise in homelessness applications, increasing from 1,910 in 2021/22 to 3,856 in 2024/25 – a 102% increase over three years. This has resulted in more families being placed in bed and breakfast (B&B) accommodation, often beyond the statutory six-week limit.
The council acknowledged the challenges and stated it is taking action to address the issue, including an active programme to reduce reliance on B&B placements and improve the quality and suitability of temporary accommodation.
The Local Government and Social Care Ombudsman (LGSCO) direction states that temporary accommodation that is not suitable or self-contained can only be used for a maximum of six weeks for families when no other accommodation is available. The Ombudsman may recommend a weekly payment in the range of £100 to £200 as compensation to the household.
