Future of supported and sheltered housing 26 January 2017 1

What I will cover Government policy, timetable and announcements Key messages from our member engagement Our emerging thinking

Government’s rationale for change Want to see quality services focusing on outcomes, oversight and cost control Want to support better local co-operation to target and commission services and integration Need to manage growing demand within tighter public spending climate Universal Credit is on the horizon 3

Government’s proposed approach Commitment to fund at current levels, applying rent cut LHA cap will apply to all tenants from 2019, but no SAR Housing costs paid through benefit system up to LHA level Local authority top-up, with ring-fenced funds allocated by DCLG A different solution for short-term transitional services Rent cut for supported and sheltered from April 2017 – except refuges, alms houses, co-ops and ‘specialist supported housing’ 4

Rents and service charges Rents and service charges How will schemes be funded? LHA Cap Support and/or care costs Now Rents and service charges Other Funding Local Funding DWP Funding RINGFENCED Support and/or care costs 2019 - Rents and service charges 5

Government consultation Focused on the ‘how’, not the ‘what’ Fair access to funding, detailed design of the ring fence, any additional protections for client groups; Clarifying expectations for local roles and responsibilities; Arrangements to provide oversight and assurance around ensuring value for money and quality outcomes focussed services; The appropriate balance between local flexibility and provider certainty, assurance for developers and investors to ensure a pipeline of new supply; Developing a workable funding model for short term accommodation, including hostels and refuges. 6

Federation engagement activity to date Ten consultation events with members across the country, plus other meetings & webinars Focused sessions on key topics Two Federation Task & Finish group meetings Regular engagement with Ministers, civil servants and stakeholders Involved in three of four Government task & finish groups 7

What have we heard so far? Support for national commissioning framework with teeth Support for strong ring fence but scepticism about impact of statutory duties Questions on how can collaboration across different types of commissioning body be encouraged? Support for maintaining landlord/ tenant relationship and actual rents Concerns about capacity of local authorities to plan, administer and oversee Call for simplicity What have we heard so far? 8

What have we heard so far? Support for transitional protection for existing tenants Concern about variable impact of local scheme as LHA rates differ – particularly for sheltered housing Definition of short term services – divergent views but many see role of the benefits system fundamental in covering basic housing costs 9

Our emerging thinking An alternative to the LHA cap A different model for sheltered housing The localised system Short term services

Understanding the impact of the LHA cap Regional % Affected % HB Rent Roll at Risk East 74% 26% East Midlands 95% 44% London 15% 6% North East 96% 33% North West 89% 29% South East 49% 14% South West 77% 23% West Midlands 88% Yorkshire and The Humber 39% Grand Total 27%

Sheltered housing (*%) Source: Local authority survey. Base: 83 Commissioners. Fieldwork dates: 19 October – 2 December 2015

Value of sheltered housing Provide peace of mind, safety and security Support and maintain independence Better individual physical and mental health Maintain and develop links with the community Maximise incomes and reduce fuel poverty Prevent hospital admissions Enable timely discharge from hospital Prevent re-admissions to hospital Enable rapid recovery from periods of ill-health.

The localised system Allocate to housing authority in two tier authorities Sizing the national and local funding pots by existing spend with increases factored in for increasing need Commissioning by scheme, not individual allocations National commissioning framework and national guidance Strong ring fence, and consideration of statutory duties Transitional arrangements

Short term services High level of risk for any services funded via a wholly localised funding model A wholly local or national pot might be the most appropriate model for some very short term transitional services Universal Credit needs reform to better deal with claims from vulnerable homeless people

DWP/DCLG Select Committee Explore how a supported housing cap could work rather than a LHA cap – costs in supported housing bear no relation to the local private housing market and a more appropriately defined cap would provide greater certainty for tenants and providers Explore how the system can work more effectively for hundreds of thousands of older people living in sheltered housing giving them certainty that they’ve a home for life. Ensure the ring-fence around any devolved sum can be guaranteed into the future Protect vulnerable people through new statutory duties around preventative services and meeting the housing needs of people traditionally poorly served by local funding systems Continue to exempt supported housing for the 1% rent decrease imposed on all social housing for the period running up to the new system in 2019.

Starts at Home campaign

Ways to get involved and find out more Email supportedhousing@housing.org.uk with queries Visit the website: http://www.startsathome.org.uk/ See DWP research and consultation Read our select committee response 18