Sector bodies warn £300m funding cut could reduce appetite for supported and retirement housing

News11.05.231.00 PM by Stephen Delahunty

A number of sector bodies have expressed their disappointment with the health department, warning that a £300m funding cut could undermine plans to increase the supply of supported and retirement housing.

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A £300m funding cut by the health department could undermine plans to increase the supply of supported and retirement housing #UKhousing

In a letter to the Department for Health and Social Care (DHSC), the groups warned that the cut to the £300m Housing Transformation Fund (HTF) will remove the appetite of providers to deliver supported and retirement housing.

The funding was identified by the government in the Social Care White Paper around 18 months ago as necessary to integrate housing into health and care strategies.

But last month, the DHSC announced that it had updated its care plans, which also included a decision to hold back hundreds of millions of pounds promised to help plug staff shortages.

At the time, the Centre for Ageing Better pointed out that the annual cost to the NHS from poor housing and its impact on residents’ health is almost five times greater than the one-off funding that has now been pulled by the government.

For its part, the government maintains that it supports the construction of new supported housing through the capital subsidies available via the long-standing Care and Support Specialised Housing Fund, as well as the wider Affordable Homes Programme.

The letter continues: “Supported housing is also vital in reducing homelessness and relieving pressures on health and the criminal justice sector. Supported housing is not only vital to a sustainable social care system, it also makes a substantial contribution in helping people to access primary care and specialist treatment and diagnosis from partner services to maintain their health and well-being.”

The letter is signed by the National Housing Federation (NHF), the Chartered Institute of Housing, Homeless Link and the Association of Directors of Adult Social Services.

The bodies also warn that new supported housing schemes that vulnerable groups urgently need have now become “effectively undeliverable”.

The NHF cited a survey it conducted recently that showed reduced appetite to develop new schemes with low capital grant rates, planning and land availability and revenue funding for services cited as major barriers.

This is alongside tight margins in the sector at a time of rising inflationary pressures, with demand for supported housing expected to increase by 125,000 homes in less than 10 years.

The letter ends: “In the absence of the Housing Transformation Fund, we are keen to understand what practical steps the government is proposing to take to increase the supply of supported and retirement housing.”

The bodies have requested a meeting with health secretary Steve Barclay to discuss the issues raised in the letter.

In response, a DHSC spokesperson said: “Our plan to reform social care – Next Steps to Put People at the Heart of Care – highlights how important the right housing arrangements are in supporting people to live independently, and we remain committed to helping people to live at home comfortably wherever possible.

“We are launching the Older People’s Housing Taskforce which will bring together experts from across the sector to make recommendations on how we make sure that older people have a better choice of accommodation to suit their needs and preferences.

“We are also continuing to provide funding to support people to remain independent at home. This is in addition to the £573m invested annually in the Disabled Facilities Grant and the £102m of new money available for local housing authorities to increase their funding for home adaptations and improvement services.”

The cut to the funding was announced at the same time as it was revealed that a leading expert in care for older people is now the chair of the government’s retirement housing taskforce.

Professor Julienne Meyer will lead work across the Department for Levelling Up, Housing and Communities (DLUHC) and the DHSC to grow the senior living sector and increase housing options for older people.

The taskforce will run for up to 12 months and will produce an independent report with recommendations for DLUHC and DHSC ministers, with interim findings available after six months.