end homelessness together Workshop on Future Funding of Supported Housing and Hostels January 2016

BACKGROUND end homelessness together Since 2003 supported housing has been funded by two main sources  Housing Benefit  Supporting People (or SP legacy arrangements)

1. Housing Benefit end homelessness together Covers Core Rent Eligible service charges (such as housing management)

1. Housing Benefit continued end homelessness together In supported housing: Tends to be exempt from LHA (different rules depending on RP status) Can be paid for short-period of times (e.g people staying a week in emergency accommodation) Paid directly to landlord

2. Supporting People (or local successors) end homelessness together Housing Related support e.g.  Encourage and motivate the service user in a number of life skills areas  Giving advice relating to move on and permanent housing opportunities  General counselling and emotional support

2. Supporting People continued end homelessness together Ring-fence was removed in % cuts in funding estimated on average in England Some place cuts in the region of % of funding

3. HB v SP funding end homelessness together The lines between what is Housing Management (HB eligible) and what is Housing Related Support (SP eligible) is sometimes a blurry one For example:  advising someone on money management = support  Chasing up rent arrears = housing management There is a suspicion in some parts of Government that agencies have tried to off-set SP cuts by increasing rental costs Current overall HB bill = £26 billion and projected to rise

3. Universal Credit – Main Model of Delivery end homelessness together Monthly Payment Payment direct to tenants Rents agreed with DWP not local authority Monthly Assessment

3. Universal Credit – Concerns of Agencies end homelessness together Would lead to rent arrears Would bankrupt short-stay projects Would force increased money management overnight into vulnerable peoples hands Would mean rents were agreed (or not) with people who had no understanding of local factors

4. Interim Rental Solution for Supported Housing end homelessness together Make supported housing amongst the last types of accommodation to go over to UC Keep clients with support needs out of early “roll-out” of UC Keep exempt accommodation rents out of UC (half of supported housing) Keep specified accommodation rents out of UC (85% of supported housing)

PAUSE end homelessness together Any Questions or Thoughts about where we currently are?

6. So What happens next end homelessness together The Conservative Government is committed to UC All geographical areas are suppose to have some people on UC by end of 2016 Gateway opening up 2016 No new claims for JSA and ESA by end of 2016

6. So What happens next end homelessness together 2017 existing JSA and ESA claimants start migrating over to UC (currently only new claims) 2018 or 2020 – Housing Benefit due to end. At this point how are rents in hostels and supported housing to be funded??????

5. Current context end homelessness together Rents in social housing have to reduce by 1% per year for next four years Estimates are that supported housing makes up between 5%-15% of this reduction £160 million over four years Lot of work to try and get Specified Accommodation exempted (WR&W Bill) Service Charges removed from new rules Half of homelessness agencies we surveyed said they will close services. Another one- third will no longer work with most complex

6. Current context end homelessness together HB (& UC Housing Payments) in social housing will be capped at LHA rates This will impact on: (a) young people moving in one-bedroomed social housing (all vulnerable?), (b) supported housing providers (c)areas with lower LHA rates??? HMT have said DHP will protect supported (currently £70 million per year allocated) A single provider offering 550 beds will lose £3 million per year (4% of £70 million)

7. Getting to a decision end homelessness together Government is currently funding a piece of research trying to assess The size of the supported housing sector Whether it has shrunk or increased in last few years The cost to the HB bill of supported housing Whether this shrunk or increased in last few years Currently there is no benchmark to use for these figures. All the existing data sources are inadequate

7. Getting to a decision end homelessness together Government is currently funding a piece of research trying to assess The size of the supported housing sector Whether it has shrunk or increased in last few years The cost to the HB bill of supported housing Whether this shrunk or increased in last few years Currently there is no benchmark to use for these figures. All the existing data sources are inadequate

7. Getting to a decision end homelessness together The survey is of all lower-tier and unitary local authorities And of providers of supported housing Due to have a final report by end of March???

7. What system might they choose end homelessness together PROS It works currently It pays for short periods of time. It pays for people moving in the middle of the month Keeps connection to individual’s rent entitlement CONS Government want to simplify the benefits system Is it realistic to keep HB just for supported housing? Lack of work incentives is a big issue for DWP. These remain embedded in HB Caps from April 2018 A) Keep a small-scale version of HB for supported housing

7. What system might they choose end homelessness together PROS Keeps connection to individual’s rent entitlement Replicates the world outside of supported housing Better work incentives than HB CONS All the problems that led to UC not being put into supported housing in the first place. Namely:  Monthly structure  Money direct to clients  Rents set with DWP Caps from April 2018 B) Pay rent out of Universal Credit

7. What system might they choose end homelessness together PROS Simple. Takes it out of the benefits system altogether Keeps the local authority link with providers. Might be easier to not have to chase individual rents Good work incentives (client pays no rent) Ensures quality by stopping rogue projects? Ringfence protects the money CONS Removes connection to individual’s rent entitlement Could be eroded every year How safe would the ringfence be. Government do not like them (undermines “localism”) C) Localise the supported housing rent “HB pot” with ringfence

7. What system might they choose end homelessness together PROS Most of the previous slide Could be used in conjunction with a localised statutory TA pot of money CONS Most of the previous slide Could be used in conjunction with a localised statutory TA pot of money Would be ripe to be spent elsewhere, leading to short-term decision making Vagaries of local politics (popular v unpopular) D) Localise the rent “HB pot” but without a ringfence

7. What system might they choose end homelessness together PROS Would mean money could not simply be diverted away to other statutory duties Would make funding about the individual Could fit with “localism” CONS Feels very vague. Involves thresholds (you are either “in” or “out”) Other statutory duties suggest a possible post-code lottery E) Localise the “pot” but combine with some form of statutory obligation on LAs (e.g. a “Right to Support” )

7. What system might they choose end homelessness together PROS Would diversify funding streams Would keep some element of entitlemement Might be able to better protect how the localised pot is used by tying use of it to an HB/UC claim CONS Will the top-up be discretionary? Is it combining the worst of all worlds? Both complex and doesn’t offer protection F) Pay LHA levels of rent out of HB or UC and top-up via some local “pot”

7. What system might they choose end homelessness together PROS Could solve all the problems CONS Nobody has come up with another system G) Some new system

9. Recap of options end homelessness together A) Keep a small-scale version of HB for supported housing C) Localise the supported housing rent “HB pot” with a ringfence D) Localise the rent “HB pot” but without a ringfence E) Localise the “pot” (as in B& C) but combine with some form of statutory obligation on LAs (e.g. a “Right to Support” ) B) Pay rent out of Universal Credit F) Pay LHA levels of rent out of HB or UC and top-up via some local “pot”

8. Some questions end homelessness together What are the pluses and minuses of the different systems? Does one seem preferable? How far should supported housing seek a single funding stream covering all the running costs of a scheme (ie support cost, care costs and the rental cost of providing the accommodation?) Would a mixed system combining HB or UC, split from a localised pot (for example covering eligible service charges) lead to greater security through the diversity of funding streams, or would this approach be fragmented? Is it important there remains some rental element in how supported housing is funded (as distinct from an overall grant)

8. Some question for you end homelessness together Should the funding be “follow” the service (like Supporting People) or should it “follow” individuals (like HB) Should Discretionary Housing Payments have a role in the funding of supported housing rents? Is there a role for some statutory duty? For example a legal “right to support” What are the impacts of the delay in not knowing how much and what type of funding will be available from April 2018

Contact Details end homelessness together Paul Anderson: Policy Manager – Homeless Link