Greater Manchester is set to spend nearly £75 million on temporary housing this year in the face of a homelessness surge.

A harrowing report by Greater Manchester Combined Authority (GMCA) has lifted the lid on the scale of the problem around the region, which has left thousands of households and children stuck in bed and breakfasts or hostels.

The latest figures show there are 5,000 households living in temporary homes around Greater Manchester, and more than 7,000 children – a growing problem with a 71 percent rise in households in temporary housing in Greater Manchester since 2020, compared to 26pc across England.

This is being driven by a 'chronic undersupply of social, council and other genuinely affordable housing,' as well as the Right to Buy scheme leading to fewer social homes being available.

The problem is also being fuelled by rising rent prices, GMCA said.

A report on the issue stated the problem has become "unsustainable" and stated the need to boost affordable housing.

Salford City Mayor Paul Dennett, who leads GMCA's work on housing and homelessness, said the huge cost of temporary housing is an "existential threat" for some town halls.

He added: "We are seeing councils up and down the country going bankrupt and temporary accommodation overspend is a significant element of that.

"This should be a huge concern across this country right now and for us in Greater Manchester."

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Mr Dennett said only 42pc of the money spent in the region on temporary housing can be reclaimed through housing benefit subsidy – meaning the region is losing a huge amount of that cash.

The problem is very real in the city of Salford, where Mr Dennett declared a housing and homeless crisis earlier this year, which he said was fuelled by the former government's accelerated asylum programme.

But the issue is hitting councils across the region as they have seen spending on temporary housing spike.

In Stockport, the council said in June that it expects its spending on hotels to hit £1 million this year, up from £180,000 in 2022.

There was a more positive update for Manchester City Council, which managed to reduce temporary accommodation usage from a peak of 3,316 households in December 2022 to 2,826 at the end of June 2024.

Greater Manchester Mayor Andy Burnham said steps have to be taken to bring that cost down for councils across the region.

"A next step for me is when can the £75 million pressure be reduced to zero so you can actually see a difference to your bottom line," he added.

"The commitment I made as Mayor of Greater Manchester is that devolution has to take pressure off you [councils]. This is something we can solve if we get the right support.

"I'd like to see how that budget line can be brought down each year."

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