Brent Council overspends £18.3m on social care and homelessness
Nearly 8,800 homelessness applications and rising care costs drove the deficit in 2025/26
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Brent Council ended the 2025/26 financial year £18.3 million over budget, a deficit driven by rising costs in adult social care and homelessness services. The overspend was met using reserves set aside for financial pressures, as reported by MyLondon on 29 July 2026.
The council’s year-end financial summary showed a £7 million overspend in adult social care and £11.7 million in housing services. Nearly 8,800 homelessness applications were recorded, a 40% increase on the previous year. By April 2026, more than 1,400 households were living in temporary accommodation paid for nightly.
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Council blames external pressures
Deputy Leader and Cabinet Member for Finance, Cllr Gwen Grahl, told a Cabinet meeting on 27 July 2026 that the overspend reflected pressures beyond the council’s control. She cited an ageing population, rising care costs, and a housing market where private rents have outpaced available funding.
“These are not pressures that can simply be switched off. They're the consequences of many other factors outside Brent's control.”
Cllr Gwen Grahl, Deputy Leader, Brent Council
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Grahl added that the cost of home care, residential placements, and nursing care had risen sharply in a difficult market. The council also faced a £6.6 million deficit in the dedicated schools grant, though the housing revenue account broke even.
Reserves and cuts used to balance budget
To manage the overspend, Brent Council used reserves and implemented £20.4 million in cuts. Council tax and business rate collection rates improved to 91.6% and 94.1% respectively, which the council attributed to increased capacity and better data use.
A £1.5 million hardship fund supported over 13,000 households facing financial difficulty. Historic debt fell by £23.7 million, the first reduction in five years, according to the council’s financial report.
Call for government action
Council Leader Cllr Muhammed Butt said Brent was managing overspends despite ongoing challenges. He acknowledged pressures from adult social care and homelessness but stated the council was delivering services for residents.
Both councillors called for central government to address systemic issues. The council’s report stated it could not resolve the housing crisis, reform the care market, or fix the Special Educational Needs and Disabilities system through cuts alone.
What happens next
Brent Council will continue to monitor financial pressures in adult social care and housing. The next formal update on the budget will be presented to the Cabinet later in 2026. It is unclear whether further cuts or reserve use will be required.
Questions this report answers
+How much did Brent Council overspend in 2025/26?
Brent Council overspent £18.3 million in 2025/26. The deficit was covered using reserves set aside for financial pressures, as reported by MyLondon. Adult social care and housing services drove the overspend.
+Why did Brent Council overspend on homelessness?
Homelessness applications in Brent rose 40% to nearly 8,800 in 2025/26. Over 1,400 households were in nightly-paid accommodation by April. Cllr Gwen Grahl cited unaffordable housing and rising private rents as key factors.
+What is Brent Council doing to manage the overspend?
Brent Council used reserves and made £20.4 million in cuts to cover the £18.3 million overspend. It also improved council tax and business rate collection rates. A £1.5 million hardship fund supported 13,000 households.
+What did Brent Council ask the government to do?
Brent Council called for central government to address funding gaps in social care and housing. Councillors stated the council could not resolve systemic issues like the housing crisis or care market reforms through cuts alone.
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