New supported accommodation schemes save Shropshire Council £1.4 million and reduce reliance on B&Bs

New supported accommodation schemes opened across Shrewsbury have helped save Shropshire Council around £1.4 million in a single year, while dramatically reducing the number of households placed in unsuitable hotel and B&B accommodation.

The schemes at The Tannery, Coton Hill House, Parish Rooms and 70 Castle Foregate were brought forward as part of the council’s response to growing housing pressures and rising temporary accommodation costs.

During 2025/26, the combined net cost of operating the schemes was approximately £249,000. By comparison, housing 100 applicants in nightly paid hotel and B&B accommodation over the same period would have cost an estimated £1.66 million.

The result is a net saving of around £1.4 million to the council overall, alongside improved outcomes for vulnerable residents.

The Tannery operated for the full financial year, with the other schemes opening during the second half of the year.

The council has also significantly reduced the number of households currently being housed in hotel and B&B accommodation, with numbers now down to around 25.

Councillor James Owen, Shropshire Council’s Cabinet member for housing, said:-

“Using hotels and B&Bs for temporary accommodation is extremely expensive and, in many cases, far from ideal for the people involved.

“These schemes are helping us provide more stable, supported and appropriate accommodation for residents, while also delivering major savings for the taxpayer at a time when the council remains under very significant financial pressure.

“This shows the importance of investing in prevention and local solutions rather than continually spending large sums on costly emergency accommodation.

“We still have challenges ahead, but reducing the number of households in B&Bs to around 25 is very significant progress and something everyone involved should be proud of.”

Some of the financial savings relate to reduced Housing Benefit subsidy loss within the council’s wider enabling budget, alongside direct savings to housing services.

The schemes form part of the council’s wider programme of financial recovery and service reform, aimed at reducing long-term costs while improving support for residents facing homelessness or housing insecurity.