Government Announce New Strategy For Funding Supported Housing

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After Theresa May announced last week that the LHA cap would not apply to supported housing, the government has conceded that a ‘one-size-fits-all’ approach won’t work for the funding of supported housing, either.

Outlining a new approach, the government acknowledges local areas don’t have sufficient control or oversight of provision – with it “not always possible” to ensure value for money for tenants or the taxpayer. The government says its ‘fit for the future’ funding model confirmed today addresses concerns raised by the social housing sector and other key stakeholders.

Sheltered housing and extra care will continue to be funded in the welfare system with a flexible funding approach that includes:

  • A ‘Sheltered Rent’ scheme from April 2020.
  • Short-term supported housing having a new ring-fenced grant available to councils in England.
  • The amount of short term supported housing grant funding set on the basis of current projections of future need – in Wales and Scotland, an equivalent amount will be provided for those administrations to decide on allocation.
  • Improved local planning for supported housing and commissioning across service areas with proposals for a ‘National Statement of Expectation’ to underpin the new funding regime.

The government describes ‘sheltered rent’ “a type of social rent that recognises the vital role that these homes play in supporting older and vulnerable people”. It adds that the new rent model “acknowledges the higher costs of these types of housing compared to general needs housing.

“This will see gross eligible rent (rent inclusive of eligible service charges) regulated by the social housing regulator. We will set appropriate rates for sheltered and extra care housing costs, established in consultation with the sector.”

DCLG minister Marcus Jones said the “important and necessary” changes would take time to implement – warning that it was “crucial” support provided is not interrupted or put in doubt. “Which is why these changes will now commence from April 2020 rather than April 2019. It is our aim through making these changes to provide funding security to providers by allowing them to make long term investment decisions and therefore secure future supply,” he said.

Jones said government had also considered the role of refuges and calls from some of the sector to nationalise the funding and commissioning of this. He cited the government’s Violence Against Women and Girls (VAWG) Strategy saying a local approach would ensure the best outcomes for vulnerable renters in crisis and emergency supported housing – with local authorities best placed to understand and meet local needs, and to take a holistic view on both housing and support provision.

The Government, he said, has already committed (in the 2016/20 Violence Against Woman and Girls Strategy) to review the current approach to refuge provision in England by November next year.

“We will need to pay particular attention to the funding of care and support costs as we do this, and will continue to work closely with this sector to make good our commitment. It is vital that we continue to support the most vulnerable in our society, and have a sustainable supported housing sector which is fit for the future, providing value for money for those that pay for it and, most importantly, positive outcomes for those who call it home,” he said.