Government Scrap LHA Cap For Supported Housing
Last Wednesday (25.10.17) the Prime Minister, Theresa May, announced that the Local Housing Allowance (LHA) cap will not apply to supported housing from April 2019. This is fantastic news for the supported housing sector and its residents and is a result of sustained campaigning from Homeless Link and others over the past few years.
Mrs May said: “This is something we have been looking at for the past year. It will look at a wide range of issues. It needs to make sure the funding model is right to ensure providers of supported housing are able to access funding effectively. We will not apply the Local Housing Allowance cap to supported housing. Indeed we will not be implementing it in the wider social rented sector, and the full details will be made available when we publish our response to the consultation.”
Opposition to the use of the LHA, as a basis for a new funding system, has been almost universal since it was first announced. Housing professionals had warned that capping the amount of support available for schemes such as sheltered accommodation, women’s refuges and extra-care facilities would mean they would cease to function.
Supported housing costs more because it relies on far more than simple bricks and mortar: slashing the money available meant many housing associations announced they would have to mothball plans for such schemes.
The lack of relationship between the LHA rate and the costs of supported housing, compounded by the regional disparities in rates, mean that it was never appropriate for our sector.
At this stage, there are no further details available on what alternatives to the LHA rate the Government might be considering, however, the Prime Minister indicated that full details will be published on Tuesday (31st October). This victory on the LHA cap is significant, but we know there are still a number of challenges related to any new model, such as the incompatibility of Universal Credit and short-term accommodation.
Homeless Link’s Chief Executive, Rick Henderson, commented: “The Prime Minister’s announcement marks a significant victory for the supported housing sector and the thousands of vulnerable individuals it supports.”
“Homeless Link, working with our members, has campaigned tirelessly for the Government to drop their highly controversial plans to apply the LHA rate to supported housing, and are pleased that our concerns have been listened to. We must be certain that the revised plans work for the full range of vital supported housing services, and look forward to continued collaboration with our members and with Government to ensure we secure a sustainable future for the supported housing sector.