Supported Housing Plans Curtailed Due To Government Dithering

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A survey by the National Housing Federation (NHF) reveals that housing associations that provide supported accommodation have curtailed plans to build new homes because of government inaction.

This follows months of concern generated by government plans to review the funding for these services, which the sector and leading politicians believe will not work. In all, 69 housing associations – which together deliver a third of supported and sheltered homes in England – responded to the survey. Supported housing services save the taxpayer around £3.5bn in NHS costs.

To the NHF, the government’s indecision has left residents and housing associations with little certainty about their future income, leaving 71 new schemes, representing 2,185 homes, postponed

  • 19 new developments, totalling 803 homes, cancelled
  • 22 existing supported schemes and three sheltered schemes, amounting to 132 homes, facing closure.
  • Plans to build new homes down from 8,800 to 1,350 units.

The main factors for these closures and delays relate to the uncertainty about the government’s proposed funding model and the withdrawal of funding for support services. Where schemes are going ahead, two key reasons were cited; 24% estimate the local cap on housing benefits would be high enough in their area to cover their costs, followed by 18% who believe their shortfall would be offset by sufficient government funding. The five-year cumulative cost to the taxpayer of failing to make up the existing shortfall of these specialist homes is estimated at £2.72bn.

Housing associations made a strong case for an alternative model that addresses concerns about how the money will be allocated and how long it will be available for. David Orr, chief executive at the National Housing Federation, said: “These findings really bring it home: changes to supported housing funding are stopping building for the most vulnerable.”

“Housing associations know first-hand that the proposed funding model will not work – a view backed by a joint select committee – and yet government has failed to heed warnings. With social care in crisis, the role supported housing plays in alleviating pressures on the NHS is ever more important. These changes have not even come in yet and they have taken 7,000 homes for vulnerable people out of the pipeline.”

“The proposed changes in funding bear no relation to the real cost of providing this type of housing. It is time government put supported housing on a secure and sustainable footing.”

John Glenton, Riverside’s executive director of care and support, who gave evidence at Westminster on the issue, said: “Landlords like us have strong partnerships with local authorities, and are poised to begin developing much-needed additional supported housing. While this uncertainty over funding continues, a question mark hangs over development plans which would support some of society’s most vulnerable people.”

He added: “Along with other landlords, we urge the government to resolve this quickly.”