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Sector welcomes supported housing policy change, but flags concerns
The sector has welcomed a change in direction from the government over the funding of supported housing but pointed out that there are still crucial details to be ironed out.
But while housing leaders welcomed the plan to keep long-term supported housing funded through the housing benefit system, there are serious concerns about funding short-term accommodation, such as homelessness hostels and women’s refuges, through a ringfenced pot held by councils.
Housing leaders also have questions about the proposed “sheltered rent” for extra care and sheltered housing – a type of social rent that “acknowledges the higher costs of these types of housing compared to general needs housing”.
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There will be an overall cap on rent charged and on annual increases. The rent level will be determined using formula rent, plus or minus 10% flexibility, and an amount for the service charge up to a certain level. This new rent will be regulated by the Homes and Communities Agency. The government will set the rent rates after consulting with the sector.
Rachael Byrne, executive director of care and support at Home Group, said she thought plus or minus 10% would “not be enough” for sheltered rent.
She added: “It’s going to be interesting how we work this out through the consultation. The market is very diverse – you’ve got housing associations, the private sector and charities all in there across the country.”
Charlie Norman, chief executive of St Vincent’s and board member of Placeshapers, said “common sense has prevailed” but added that if rents for sheltered housing are not set at the “right levels” this could be a “step backwards”.
Angela Lockwood, chief executive of North Star housing association, said an important factor will be at what level the sheltered rent is set. She welcomed the government’s plans as a “massive shift forward” but added that the “devil is in the detail” on the level of funding available.
There are also concerns over what funding will be available from 2020 onwards.
Tony Stacey, chief executive of South Yorkshire Housing Association, said the proposals are "generally good news" but unless the government “reinstates the £540m it has pinched from social housing rents in 2020/21, supported housing could be facing a 13% cut”.
Hugh Owen, Director of Strategy and Public Affairs at Riverside, said: “There is much to welcome in the recent Government announcement and we stand ready to work constructively with Ministers and officials as details are fleshed out. We are definitely moving in the right direction, and appreciate that the Government has gone a long way to try and provide the reassurance that tenants and providers are looking for in creating a sustainable funding system.
“But we do have major concerns that an entirely localised funding route outside the benefit system for most of our supported housing, will fall well short of the level of long-term assurance we are looking for. We are encouraged by the Government’s promise that those who need this type of support will be entitled to funding through local authority cash, and look forward to seeing details of how this would work in practice. Providers need long-term certainty before making multi-million pound investment decisions.”
Hugh Owen, director of strategy and public affairs at Riverside, said: “We do have major concerns that an entirely localised funding route outside the benefit system for most of our supported housing, will fall well short of the level of long-term assurance we are looking for.
"Despite these major challenges, I think we will find a way through – we are in a good place with government, and we share the same vision for the sector.”
Last week John Healey, Labour’s secretary of state for housing, said supported housing funding faces a “cliff edge” in 2019 because the government has made no funding commitment after this point.
