Supported Housing Funding To Be Kept Out Of Universal Credit
The government has unveiled its plans for the future funding of supported housing, ending months of uncertainty.
The plans reveal that supported housing, including refuges and all forms of short-term supported housing, will be funded by housing benefit and kept outside of the Universal Credit system. Alongside this, the government has also announced that it will work with providers, local authorities, membership bodies and resident representatives over the coming months to develop a robust oversight regime. This work will ensure quality and value for money across the whole supported housing sector. In addition, a review of housing related support will be undertaken to better understand how housing and support currently fit together.
It comes after months of uncertainty, with the last update being that government was not going to apply the LHA cap to supported housing and social housing in general. Finally, the government conceded that a one-size-fits-all approach wouldn’t work for the funding of supported housing, after the Prime Minister announced that the LHA cap would no longer apply.
Outlining the 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. However, its ‘fit for the future’ funding model 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.
The flexible funding approach features:
- 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.
Lord Porter, Chairman of the Local Government Association, said: “Today’s announcement demonstrates that the Government rightly sees councils as crucial when it comes to providing supported housing for some of their most vulnerable residents. Ensuring that no cap will be applied to housing benefit, and that funding will be kept at current levels for short-term accommodation, is a hugely positive first step towards putting all supported housing on a more secure footing.”
“Councils are champions of vulnerable people. Whether it’s elderly people in sheltered accommodation, people with learning and developmental disabilities, or people who face homelessness, councils need the resources to be able to make sure that they are adequately protected and housed. We look forward to seeing further detail of these proposals, and working with government to make sure that local authorities are able to meet the needs of some of the most vulnerable people in their communities.”
