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Providers must shape the future of supported housing

Social landlords need to influence supported housing funding plans to ensure there is enough accommodation to meet growing demands, says Louise Drew

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Providers must shape the future of supported housing, says Louise Drew #ukhousing

Social housing providers and charities must not miss out on the opportunity to influence the new funding plans for supported housing to ensure long-term, stable funding models are put in place to boost the supply of supported accommodation and protect vulnerable people.

The sector has largely welcomed the government’s decision to stop plans to apply the Local Housing Allowance (LHA) cap to supported housing and the wider social rented sector, and the release of new funding plans for supported housing.

“The sector can hopefully now move forward with greater certainty and bring building projects back into action.”

However, much damage has been done since the introduction of the cap was proposed in 2015. For two years, developers, charities and social landlords have been forced to put plans to create more supported housing on hold, creating a significant supply shortfall.

This situation has been made worse by the fact that demand for supported accommodation has been steadily rising.


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With plans to cap housing benefit to supported housing scrapped and the proposals to introduce a more flexible and stable approach to funding, the sector can hopefully now move forward with greater certainty and bring building projects back into action.

“The government has been listening to the sector’s concerns.”

The proposals demonstrate that the government has been listening to the sector’s concerns.

Rather than recommending a one-size-fits-all approach to funding, it is proposing three different models tailored to the diversity of providers within the sector and the people they support:

  • Sheltered accommodation and extra care housing (generally older people with support needs)
  • Short-term supported housing for those in crisis (such as those escaping domestic violence)
  • Long-term housing for those with learning or physical disabilities or mental health issues

Sheltered and extra care homes will continue to be funded through the welfare system but a new ‘sheltered rent’ is proposed. It is a form of social rent that takes into account the higher cost of providing supported housing and will be regulated by the social housing regulator.

The government is proposing to introduce an overall cap on the amount providers can charge for rent and service charges and will seek to cap annual increases. While this approach is generally a positive move, engagement with the sector regarding the appropriate rent level and allowance for services is essential.

“As with any new system, the devil will be in the detail.”

In the case of short-term accommodation, a more radical approach is proposed. A new grant funding model, underpinned by a local planning and oversight regime, will see local authorities being allocated a ringfenced grant to fund services to meet need in their local area.

As with any new system, the devil will be in the detail and it will be necessary to ensure that sufficient levels of funding are allocated appropriately to avoid any detriment to providers and users, and prevent a postcode lottery for people with short-term supported housing needs.

Given the diverse nature of providers and users, and the U-turn on the application of the LHA, long-term housing will continue to be funded as it is currently – through the welfare system.

The further consultations on the proposed funding models and the delay in implementation from April 2019 to April 2020 provide an opportunity for the sector to continue to engage with the government to ensure the long-term stability of supported housing and funding for vulnerable people.

In addition, the requirement for local authorities to produce a local strategic plan and a needs assessment will provide for greater integration and partnership working between all stakeholders within the sector.

There is a lot to be thankful for in the proposed new funding plans. But questions still need to be answered and it is vital that the sector works together to ensure the implementation of an efficient system that secures the long-term supply of good quality supported accommodation which meets the needs of a diverse range of users.

Louise Drew, head of social housing, Shakespeare Martineau

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