Councils spend £100m on hostels and B&Bs for homeless in 2024-25, figures show

Ministers were accused of having “failed to get to grips” with Scotland’s housing emergency, as new figures showed councils spent more than £100m last year on B&B and hostel accommodation for homeless people.

Labour said an “explosion” in the use of bed and breakfasts and hostels had seen spending by local authorities rise by 128% over four years.

Data released by councils under Freedom of Information showed councils spent £100,393,775.14 on such accommodation in 2024-25.

This total compares to a bill for hostels and B&B accommodation of £44,048,374.94 in 2020-21.

Scottish Government figures meanwhile showed that the number of households in temporary accommodation increased by 6% over the year to September 30 2024, when the total stood at 16,634.

As of September 30 there were 1,283 households who were living in hostels, with 2,680 being accommodated in bed and breakfasts.

The figures showed there were 480 children living in either hostels or B&Bs at this time.

Glasgow City Council, Scotland’s largest local authority, spent £54,387,214 on these forms of accommodation in 2024-25, according to the figures, which were released by Labour, with the bill at the City of Edinburgh Council totalling £26,381,593.

Labour housing spokesperson Mark Griffin said that a “shameful lack of leadership” from the Scottish Government means councils have had to make “difficult decisions to ensure people have a place to sleep”.

Mr Griffin said: “There has been an explosion in the use of B&Bs and hostels to house homeless people in recent years.

“These miserable conditions were banned for a reason, but hundreds of children are still being subjected to the insecurity and instability of living in a hostel or B&B.”

The Labour MSP added: “A shameful lack of leadership from this SNP government has left councils across Scotland making difficult decisions to ensure people have a place to sleep.”

While Housing Secretary Mairi McAllan outlined an emergency plan to help tackling the housing crisis earlier this week, Mr Griffin insisted this was “too little too late”.

Ms McAllan pledged the Scottish Government will provide £4.9 billion over the next five years to build around 36,000 affordable homes – telling MSPs that this could provide “up to 24,000 children with a warm, safe home”.

But Mr Griffin blasted: “At a time when 10,000 kids don’t have a home to call their own, the SNP’s paltry pledge to help a few hundred of them is an insult.

“The SNP has failed to get to grips with this housing emergency, but a Scottish Labour government will tackle Scotland’s housing shortage and work with Councils to ensure people can get the safe, secure home they need.”

Housing Secretary Mairi McAllan said: “We are determined that everyone in Scotland should having a safe, warm and affordable place to call home.

“I set out plans this week to invest up to £4.9 billion over the coming four years in the delivery of affordable homes. We will also double our acquisitions fund to £80 million this year – bringing the total of our additional targeted investment to £120 million since the emergency was declared.

“This will support the acquisition of at least 1,200 homes by councils and housing associations and help between 600 to 800 children to quickly move out of temporary accommodation and into permanent homes.

“This is part of our total investment of £808 million in affordable housing this year to increase the supply and help reduce homelessness and the number of people in temporary accommodation, including families with children.”