As MPs, we want the government to abandon its damaging plans for supported housing
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Version 0 of 1. Providers of supported housing are rightly concerned about the government’s funding proposals. There needs to be change but the government’s plans risk creating a postcode lottery of provision. We need a system tailored to meet the needs of providers and tenants. Supported housing provides exceptional value for money to the taxpayer. The government estimates that supported housing saves £3.5bn annually, through lower costs for the NHS, social care and criminal justice systems. But value for money is more than cost savings; it is also about how public funds have been used to improve the quality of life for vulnerable people. Residents have told us just how deeply they valued this provision and the contribution it has made to their independence and wellbeing. It is unsurprising that supported housing is in considerable demand. More than 700,000 people live in supported accommodation in the UK. But there are 17,000 fewer supported homes available than needed – a figure likely to double by 2020-21. Of particular concern is a shortage of beds in refuges for women and children at risk of domestic violence, where a quarter of referrals are refused because of a lack of available space. It is in this context that the government has decided to change how supported housing is funded. The majority of supported housing tenants have their rent met in full by housing benefit, with additional costs for support and care paid through local authority budgets. The government proposes to implement a system where rents are capped at the Local Housing Allowance (LHA) level – a mechanism used to determine limits on housing benefits in the private rented sector – with top-up funding for additional costs made available through local authorities. The current system isn’t perfect, and most in the sector recognise this. However, there is real concern that the government’s funding proposals will do significant damage, with providers unable to invest to build new accommodation and, in some cases, closing existing services. Acknowledging these concerns, the Commons communities and local government and work and pensions committees launched a joint inquiry last December into supported housing. Co-chaired by MPs Helen Hayes and Richard Graham, the inquiry has taken evidence from residents, providers and local authorities on how the government’s proposals could be improved. We have concluded that, while we agree there needs to be a sustainable, long-term funding mechanism for supported housing, the government’s funding proposals will not achieve this. The government should abandon the LHA rate, which is an inappropriate measure in the context of supported housing. While costs of providing supported housing are largely consistent around the country, the LHA rate varies. This means some providers will rely to a greater extent on top-up, which is seen as a less secure source, particularly in terms of long-term reliability. Instead, the government should implement a new supported housing allowance, banded to reflect the actual costs of providing supported housing and sufficient to ensure residents only require top-up funding in exceptional circumstances. For emergency accommodation, grants should be paid to local authorities, which can commission accommodation and pay providers. An entirely separate funding system is needed for women’s refuges, which have unique challenges and operate on a national basis. We believe our proposals would reassure tenants worried about the changes, while offering providers the financial security they need to commit to services in the long-term and make investments to ensure there is sufficient accommodation to meet future need. MP Clive Betts chairs the Commons communities and local government committee. Sign up for your free Guardian Housing network newsletter with comment and sector views sent direct to you on the last Friday of the month. Follow us:@GuardianHousing |