1. Supported Housing – future funding
February 2017 – ‘Feeling at Home’ seminar

2. Background
2015 Summer Budget: it was announced plans “to reduce rents paid by tenants in social housing in England by 1% a year for 4 years from 2016.”
2015 Spending Review/Autumn Statement: the government announced plans to “cap the amount of rent that Housing Benefit will cover in the social sector to the relevant Local Housing Allowance”, including “the Shared Accommodation Rate (SAR) for single claimants under 35” from April 2016.
Early 2015: DWP and DCLG commissioned a piece of research from IPSOS Mori to determine “the scale, shape and cost of the supported housing sector”.
There has been lots of lobbying from the sector to exempt supported housing from these policies, which resulted in:
An exemption of supported housing from LHA cap until April 2019
Service charges were removed from the 1% rent reduction and introduction delayed until April 2017
November 2016 – February 2017: Launch of Government consultation
Let’s end homelessness together

3. Proposals Introduction of LHA caps
From April , Local Housing Allowance (LHA) caps will be introduced for supported housing as part of a new funding system
Caps from will be at the LHA one bedroom rate not the Shared Accommodation Rate
Rents and service charges up to the LHA rate will be paid for through Universal Credit/Housing Benefit
Where the local LHA rate does not fully cover the costs of rent and service charges, a localised ring-fenced funding pot will be available to fund any gaps
Let’s end homelessness together

4. Proposals Localised top-up element
The localised pot will be ring-fenced so it can only be spent on supported housing
But the amount of top-up needed will vary greatly between services, client groups and geographical areas and there is currently no detail on how this will be determined
LHA rates vary hugely across the country:
Inner London = £255.50
Hull and East Riding = £69.23
In two-tier councils it is not clear which layer will receive this funding
There has been a commitment that there will be no reduction from the overall amount currently spent on Housing Benefit for supported housing (£4.12 billion)
Let’s end homelessness together

5. Highlights from the Evidence Review
The Size of the Supported Housing Sector
651,500 units of supported housing across Britain. (85% of these are in England)
71% of all supported housing is for older people
29% is for working age people (Single Homeless ,Young People, Disabled People, Mental Health Problems, Refuges, Others)
71% of supported housing is owned by Housing Associations.
7% by charities or other voluntary organisations
40% of supported housing is categorised as Specified Accommodation
89% of Specified Accommodation is also Exempt Accommodation
Let’s end homelessness together

6. Highlights from the Evidence Review
The Costs of the Supported Housing Sector
Housing Benefit - £4.12 billion (85% of this in England).
This is 17% of total HB spend.
Older people supported housing accounts for 58% of the HB costs.
Working age supported housing accounts for 42% of the HB costs
The average HB award for older persons accommodation is £137
The average award for working-age supported housing is £173
It is also estimated that support and care services add another £2.05 billion of public expenditure to the overall costs of supported housing.
Let’s end homelessness together

7. Timetable www.homeless.org.uk Let’s end homelessness together
Delivery phase
Nov 2016 To Feb 2017
Consultation: consultation document
Nov/Dec/Jan/Feb
Stakeholder engagement and task and finish groups
Spring 2017
Green Paper on detailed model(s) and funding distribution consideration
Autumn 2017
Announce detailed funding model(s) and local authority funding allocations
April 2018
Shadow year arrangements in place on detail and allocation of funding to allow full transition to new model
April 2019
Commencement of new funding model(s)
Let’s end homelessness together

8. Task and Finish Groups What are they looking at?
The Government is establishing a set of task and finish groups to support the development of the new model, focusing on four key areas:
Fair access to funding (Sitra attends)
Local roles and responsibilities, including ensuring value for money, quality and appropriate oversight
Ensuring new supply of supported housing
Short term accommodation (Sitra attends)
“(they will) Include membership from key stakeholders and partners from across the sector and from across Government departments and the devolved administrations where appropriate”
Let’s end homelessness together

9. Wider policy landscape
What are the key current and future issues?
Housing White Paper
Impact of 1% rent reduction
Social care and NHS funding
Local government funding
Impact of Brexit
Let’s end homelessness together

10. Feeling at Home
Coffee Break