More than three years after Russia’s full-scale invasion of Ukraine, over £300 million set aside for English councils to help house Ukrainian refugees remains unspent, according to data released on August 18, 2025. The unused money sits alongside rising homelessness among Ukrainians, raising sharp questions about how councils manage funds and how quickly support reaches people who need it.
Freedom of Information requests to 150 English councils show that $427 million (over £300 million) of a $1.2 billion housing support budget is still held in council accounts. While some areas have moved faster than others, the overall picture points to slow or uneven use of funds intended for housing, deposits, and rent support. Advocacy groups and frontline workers say delays are pushing families to the brink, while councils point to staffing shortages, process checks, and competing priorities.
Numbers in the data underline the imbalance. Of the money already spent, only $29 million has gone to temporary accommodation for Ukrainians, and just $19.6 million has helped people access private rentals. Most spending has been on council staff and partner organizations rather than direct housing costs. Campaigners argue that this mix does not match today’s need, which is for quick access to safe homes, deposits, and guarantees that help renters pass landlord checks.
The British Red Cross reported in early 2025 that Ukrainian refugees are more than twice as likely as British citizens to face homelessness. More than 6,400 Ukrainian families are projected to experience some form of homelessness this year, from sofa‑surfing to emergency placements. Families who moved in with hosts under the Homes for Ukraine scheme report that as placements end, they cannot secure a new place fast enough—especially in high‑demand markets in the South and major cities.
According to analysis by VisaVerge.com, English councils have wide discretion over these funds, which has created a “postcode lottery” in support. Some councils move deposits within days and run landlord outreach teams. Others require long forms, repeat checks, or rigid criteria that many families cannot meet. Baljeet Nijjhar of UKrainian Refugee Help has called for clear spending targets and faster routes into private renting, noting that large reserves remain while families struggle to find guarantors or save for deposits. Opora’s Stan Beneš says the help on offer varies widely by area, even for people with the same needs.
The human cost is plain in individual stories. Solomiia Baranets, a Ukrainian refugee and legal trainee, contacted more than 50 landlords and agents but could not secure a rental. She said council help was limited and slow, and requests for guarantors or months of rent in advance kept blocking her. Her case mirrors dozens of others reported by support groups: without a UK guarantor, steady local renting history, or a deep savings cushion, families hit a wall.
Policy context and funding structure
As of April 1, 2025, the UK government funds councils at £5,900 per Ukrainian guest arriving after January 1, 2023. Earlier arrivals were funded at £10,500 under the original scheme. Hosts continue to receive £350 per month per household as a “thank you” payment.
Official guidance explains councils can use this money for integration, emergency help, and housing support, including deposits and move‑in costs. Full details are available on the government’s Homes for Ukraine funding page: https://www.gov.uk/guidance/funding-for-councils-homes-for-ukraine.
Supporters say the tariff gives councils the tools to act quickly. But in many places, families report slow, complex processes and limited outreach to landlords. VisaVerge.com’s analysis matches broader concerns about uneven local delivery under national schemes.
In Wales (outside England) the published model shows a monthly integration tariff and separate payments for hosts and unaccompanied minors, highlighting how different funding approaches try to meet similar needs.
A separate change affecting new renters is the extended “move‑on” period. In late 2024 the Home Office lengthened the time newly recognized refugees have to leave asylum accommodation from 28 days to 56 days. That extension was under review until June 2025. Groups welcomed the extra time as a helpful step, but stress it is not enough on its own—especially when private rentals require deposits, references, and local guarantors.
Barriers to private renting remain steep for many Ukrainians. Common blockers include:
– Requests for a UK‑based guarantor
– Large deposits or several months’ rent up front
– Limited English, making forms, contracts, and viewings difficult
– Multiple council appointments and repeated proof of status and income
Families who entered the UK through sponsorship may be unsure when and how to ask the council for direct housing support after a placement ends.
Calls for accountability and next steps
Advocacy groups urge the Ministry of Housing, Communities and Local Government to:
– Set clear spending targets
– Standardize deposit and guarantor schemes
– Require faster decisions on housing support
They argue large sums left unspent should be deployed first to keep families out of homelessness, then to help secure longer leases. Some councils have shown that simple tools—such as council‑backed guarantees and dedicated landlord teams—can move people into homes quickly at lower cost than prolonged hotel stays.
Lawmakers are also considering broader housing rules. The Housing Standards (Refugees and Asylum Seekers) Bill is moving through Parliament. If passed, it would set national minimum standards for refugee accommodation. Supporters say national rules could make placements safer and more consistent; critics warn that without faster funding decisions at local level, rules alone will not open more doors in tight markets.
For Ukrainian refugees seeking help now, recommended first steps are:
1. Contact the local council and ask about:
– Deposit schemes
– Council‑backed rental guarantees
– Help with application fees
2. If a host placement is ending, contact the council in writing and keep copies of all notices from the host or landlord.
3. Gather documents to speed checks:
– Proof of income
– Identification
– Any references
4. Seek help from NGOs such as:
– British Red Cross
– Opora
– Citizens Advice
– Association of Ukrainians of Great Britain
Important: keep written records of all requests and notices. That paperwork can be crucial when appealing decisions or proving an urgent need.
The stakes are high for councils as well. Every month that large reserves sit unused, emergency housing costs may rise and trust among hosts and guests may fade. Councils that have shifted funds toward direct housing costs report better outcomes and fewer repeat homelessness presentations. With budgets under pressure, targeted spending on deposits and guarantees can reduce long‑term costs while helping families reach stable homes sooner.
The core challenge is not a lack of money, but the path that money takes to reach people. The data shows ample funding on paper; the gap appears in delivery. Faster, clearer routes into private housing—supported by deposits and council guarantees—would address the most common barriers named by families and landlords alike.
Until this happens at scale across England, the warning signs from the British Red Cross and others suggest the homelessness risk for Ukrainian families will remain far too high, even with many millions still left in council accounts.
This Article in a Nutshell
Reports dated August 18, 2025 reveal over £300 million unused by English councils, delaying deposits, guarantees and private rentals for thousands of Ukrainian families struggling to avoid homelessness amid staffing shortages and inconsistent local policies across council areas.
