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Housing benefit retained for all in supported housing as grant funding plan ditched
All supported housing funding will be covered by the welfare system, ending a plan to fund short-term accommodation through council grants, the government has announced.
The government has today confirmed that housing benefit will be kept in place “for all those living in supported housing”.
Dropping proposals to give councils control of funding short-term accommodation, such as women’s refuges and homelessness shelters, will come as a relief to many in the sector.
This plan had run into opposition from charities and housing providers, who feared the ring-fence on the grants would be eroded and the cash diverted to fund other council services, creating uncertainty that could deter investment.
Plans for a “sheltered rent” – which would have acted as a limit on the amount providers can charge for sheltered and extra care accommodation – will also now not go ahead.
The decisions announced today followed a public consultation.
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Justin Tomlinson, minister for family support, housing and child maintenance, said: “We value the expertise of stakeholders and have listened carefully to their concerns during the consultation.
“As a result we will continue to pay housing benefit for all supported housing – making sure safe homes are provided for those that need it most.”
The government also announced today it will work to develop a “robust oversight regime” to ensure quality and value for money in the supported housing sector. A spokesperson said it will work “with providers, local authorities, membership bodies and resident representatives” to achieve this. It will also undertake a review of housing-related support.
The move to keep housing benefit in place for all those in supported housing was welcomed by the Local Government Association (LGA).
Izzi Seccombe OBE, chair of the LGA’s community well-being board, said: “This announcement will give councils and housing providers the certainty to sustain and invest in supported housing for some of the most vulnerable people in our communities.”
The announcement is the latest in a saga that began with plans to cap all social housing tenants’ housing benefit, including supported housing tenants, in line with the Local Housing Allowance (LHA), which is used to set benefit rates for tenants of private landlords.
This would have caused problems for supported housing providers as rents pay for enhanced services, and are often above rents paid by private tenants.
This plan, referred to widely as the “LHA cap” was ditched by Theresa May last October. The government then consulted on alternative proposals, including the council funding plan axed today.
