Hanover’s perspective Gillian Connor & Sharon Moore Impact of Housing benefit changes on supported housing and older people Hanover’s perspective Gillian Connor & Sharon Moore
Overall impact What the proposals will mean: End of exempt accommodation rules DWP take control of supported housing benefit payments Registered providers remain protected - more or less than now?
Key risks and issues For providers: Income risks Possibility of rent referral Lettability Management cost pressures Effect on future development Direct payments?
Key risks and issues For residents: Shortfalls in HB entitlement Inability to pay rent Increased confusion and uncertainty Different funding streams (especially for specialist group) DWP centralised call centres Under occupation restrictions Direct payments?
Hanover’s 4 key responses Extra care is within conventional supported housing: Clear definitions of varied sheltered housing models needed Single national flat rate top up is unworkable: Flexible framework to incorporate differences System must take current rent regimes into account: Rent restructuring/affordable rents Service charges! Under occupation of retirement housing: Singles and couples in 2 bedrooms may be penalised Removal of incentive to downsize
Case study 1 Existing extra care estate: Gross rents queried at annual rent review in 2011 New scheme nearby with lower charges LA consulted rent officer informally before actual referral Indicative rents of £143 - £158pw; half actual rents LA decided not to refer, but Restricted 2 bedroom rents to 1 bedroom HB level instead. Eventually persuaded LA to accept actual rents to retain scheme viability and strategic aims.
Case study 2 New extra care estate: Gross rents queried after scheme opened in 2009, despite agreement when originally commissioned LA did not consult rent officer or refer rents, but Restricted 2 bedroom rents to 1 bedroom HB level anyway. Lengthy negotiation to persuade LA to accept actual rents based on everyone in a 2 bedroom flat having a clear medical need. Hanover had to stress part scheme played in preventative care agenda and meeting local housing need.
Contact Details Gillian Connor Head of External Affairs Gillian.connor@hanover.org.uk 01784 446140 Sharon Moore Welfare Rights Adviser Sharon.moore@hanover.org.uk 01457 810003 www.hanover.org.uk