The Government should scrap plans to base rent allowances for
supported housing tenants on rates used for claimants in the
private rented sector, the Work and Pensions and Communities and
Local Government Committees conclude in a joint report published
today.
The Committees say it is inappropriate to use the Local Housing
Allowance (LHA) rate and argue that a new Supported Housing
Allowance, banded to reflect the actual cost of provision in the
sector, should be introduced instead. The Committees note
concerns that the Government’s proposed reform could lead to a
serious shortfall in the availability of supported housing.
Ministers are right to consider an alternative funding mechanism
for emergency accommodation, given the inability of Universal
Credit to reflect short-term changes in circumstance. The
Committees recommend grants to local authorities, which can
commission accommodation and pay providers.
The report also calls a separate funding system for women’s
refuges and urges the Government to work with Women’s Aid and
providers to devise it. The Committee says it is essential that
refuges are able to operate as a national network, unrestrained
by local admissions restrictions.
MP, Co-Chair of the inquiry
and member of the Work and Pensions Committee,
said: “Supported housing is deeply valued by
those who live in it and contributes enormously to their
independence and wellbeing. We support the Government’s aims to
reform funding for this vital sector to ensure quality and value
for money, protect and boost supply, and provide greater local
control.
“But we are concerned that the proposals, as they stand, are
unlikely to achieve these objectives. Our recommendations seek to
improve the Government’s plans and ensure it delivers on our
common goal of a sustainable, long-term funding solution for
supported housing.
MP, Co-Chair of the inquiry and
member of the Communities and Local Government Committee,
said: “The proposals have caused considerable
concern. Supported housing providers are reconsidering investment
plans, shortfalls in the levels of service are expected to get
substantially worse and vulnerable tenants are anxious that they
may no longer have the guarantee of a home for life.
“Ministers must intervene immediately by scrapping the
proposed Local Housing Allowance reform. The sector needs a far
more suitable funding system that recognises the consistent cost
of provision across the country and provides long term
reliability.
“Supported housing caters for an incredibly diverse range of
people, from long-term sheltered accommodation for older people
to short-term emergency housing for those who have recently
become homeless or are fleeing domestic abuse. The Government is
right to consider alternative funding for emergency accommodation
and we urge Ministers to also recognise the unique challenges of
refuges with a distinct funding model.”
Under the current proposals for supported housing, core rent and
service charges for supported housing tenants would be funded up
to the level of the applicable LHA rate. For costs above this,
the Government would devolve ring-fenced top-up funding.
But the Committee found that the cost of provision is largely
consistent across the country, unlike the LHA rate. Consequently,
some areas will rely more on top-up than others. As this is
considered a less secure funding source, the Committees are also
concerned that providers will be put off investing in particular
areas, creating a disparity between the supply of homes and
services across the country.
The Committees argue that a Support Housing Allowance would
ensure tenants only require top-funding in exceptional
circumstances. The Allowance would be calculated according to a
formula made up of a fixed amount for provision, which is
consistent between areas, and a smaller variable amount that
reflect differences in land costs.
Central funding of the top-up should be guaranteed for at least
the duration of the next Parliament to provide greater certainty.
Funding levels should be regularly reviewed to ensure the top-up
fund keeps pace with increases in the cost of provision and
changes in local demand.
Other findings, recommendations and conclusions
include:
- · The
Government should ensure providers are aware that supported
housing tenants claiming Universal Credit will not be worse off
if they seek employment. A job should be seen as an important
milestone towards independence and self-sufficiency.
- · The
Government should establish a set of national standards to enable
monitoring of the quality of provision in all supported housing
in England and Wales, with a specific emphasis on improving the
quality of life that tenants experience
NOTES
700,000 people live in supported housing in the UK, from
older people and those with learning and physical difficulties,
to survivors of domestic violence.
The Government acknowledges that supported housing saves in
the region of £3.5 billion per year, through lower costs for the
NHS, social care and criminal justice systems.
The system is facing considerable demand, with a reported
17,000 shortfall in supported housing places; a figure that could
double within the next three years without Government
intervention.
