Funding supported housing webinar November 2017 www.homeless.org.uk www.sitra.org www.homeless.org.uk Let’s end homelessness together

Background 2015 Summer Budget: it was announced plans “to reduce rents paid by tenants in social housing in England by 1% a year for 4 years from 2016.” 2015 Spending Review/Autumn Statement: the government announced plans to “cap the amount of rent that Housing Benefit will cover in the social sector to the relevant LHA”, including “the SAR for single claimants under 35” from April 2016. Early 2015: DWP and DCLG commissioned a piece of research from IPSOS Mori Sector lobbying resulted in: An exemption of supported housing from LHA cap until April 2019 Service charges removed from 1% rent reduction and delayed until April 2017 November 2016 – February 2017: Government consultation on LHA cap November 2017 – Government publish policy statement and further consultation on short term and sheltered accommodation www.homeless.org.uk Let’s end homelessness together Let’s end homelessness together

November 2016 Proposals Introduction of LHA caps and localised top-up fund From April 2019, Local Housing Allowance (LHA) applied to supported housing at on bedroom rate Rents and service charges up to the LHA rate will be paid for through Universal Credit/Housing Benefit Where the local LHA rate does not fully cover the costs of rent and service charges, a localised ring-fenced funding pot will be available to fund any gaps Alternative solution needed for short-term accommodation given current structure of Universal Credit www.homeless.org.uk Let’s end homelessness together

November 2016 consultation - feedback Nearly 600 responses to the consultation Four task and finish groups convened to support the development of the new model, focusing on four key areas: Fair access to funding (Homeless Link attended) Local roles and responsibilities, including ensuring value for money, quality and appropriate oversight Ensuring new supply of supported housing Short term accommodation (Homeless Link attended) Joint Select Committee report published in May 2017 critical of proposals Overwhelming opposition to the LHA cap www.homeless.org.uk Let’s end homelessness together

November 2016 consultation - feedback www.homeless.org.uk Let’s end homelessness together

October 2017 proposals - October 25th: Announcement at PMQs that LHA cap would not be applied to supported housing - October 31st: Government published policy statement and consultation 2016 2017 LHA cap applied to supported and sheltered housing No LHA cap for supported housing Long-term supported and sheltered housing have same model Separate models announced for sheltered and long-term supported housing Separate model for short-term accommodation Fully grant funded model for short-term accommodation April 2019 implementation April 2020 implementation Intention to increase local government oversight National Statement of Expectation alongside each model www.homeless.org.uk Let’s end homelessness together

Aims of new proposals Rationale for reforming supported housing funding: To secure supply now and in the future To strengthen focus on outcomes, oversight and cost control To ensure it works with the modernised welfare system Four objectives of new system: People-focused: respond to need, focused on outcomes Funding certainty: deliver new supply to meet need Flexible and deliverable: providers and commissioners can implement Value for money: for tenants and taxpayers www.homeless.org.uk Let’s end homelessness together

New supported housing funding models National Statement of Expectation Outlines an overall expectation that local planning, commissioning and services should: Meet local needs Ensure fair access Support collaborative working Promote delivery to a decent standard Encourage innovation in commissioning through a strategic approach Local authorities should be transparent in how they deliver against local plans Additional expectations for each of the three types of supported housing www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Long-term supported housing 100% of housing costs (rent inclusive of eligible service charges) will be funded through the welfare system (subject to the application of the existing HB/UC rules) Government will work with the sector to develop and deliver improvements to cost control, quality and outcomes No consultation at this stage Additional expectations: Provide support which keeps people independent, offers a real alternative to residential care, and enables efficient use of stock 2. Provide transparency in reporting against delivery www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Sheltered and extra care housing A ‘Sheltered Rent’, which keeps funding for sheltered and extra care housing in the welfare system. Sheltered Rent = ((Formula rent +/- 10% flexibility for supported housing) + (£X for eligible service charge) up to a level of £Y). Social housing regulator will use existing powers to regulate gross eligible rent (rent inclusive of eligible service charges) charged by registered providers. Additional expectations: Plan and facilitate new supply Provide support which keeps people independent, offers real alternative to residential care, and enables efficient use of Stock 3. Provide transparency in reporting against delivery. www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Sheltered and extra care housing Key questions in the consultation: How should sheltered and extra care accommodation be defined? How can the model be designed to best support future supply? What are the key factors in setting service charges and what drives variation? How could this model be tested? What are your views on the National Statement of Expectation? www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Short-term supported housing Commissioned at a local level, fully funded through a local ring-fenced grant (intended to be long term) and underpinned by a new local planning and oversight regime Short-term accommodation defined as: Accommodation with support, accessed following a point of crisis or as part of a transition to living independently, and provided for a period of up to two years or until transition to suitable long-term stable accommodation is found, whichever occurs first. All funding for housing costs previously met from Housing Benefit will be allocated to local authorities to fund services www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Short-term supported housing Funding to be set on current projections of future need, informed by discussions with local authorities, and held at upper tier Model designed to give local authorities enhanced role in planning and oversight Introduction of strategic supported housing plans, supported by a needs assessment, which outline: Description of provision for all client groups Description of provision for those with no local connection Joint working with out-of-boundary local authorities Detail of consultation with other partners www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Short-term supported housing Additional expectations Enable fair access, even where no local connection has been established Support individuals to move on to independent accommodation Report against spend Local authorities will report on spend twice a year, broken down by client groups Focus on move-on as a key outcome for people Removes short-term accommodation costs from welfare system but individual entitlement will be unchanged www.homeless.org.uk Let’s end homelessness together

New supported housing funding models Short-term supported housing Key questions in the consultation: What are your views on the definition of short term accommodation? What design features are needed to provide assurance that costs will be met? What are existing arrangements around supported housing plans and needs assessments in your local area? What arrangements are currently in place for supporting people with no local connection? What are your views on the National Statement of Expectation and the new oversight arrangements? How can commissioning be better aligned between housing and support? www.homeless.org.uk Let’s end homelessness together

Consultation information Consultation papers and the task and finish group reports can be found on the Government website, deadline is Tuesday 23rd January 2018: https://www.gov.uk/government/publications/funding-for-supported-housing Homeless Link is holding four consultation events in the coming weeks – you can book a place on our website: London – 27th November Manchester – 28th November Birmingham – 4th December Southampton – 14th December Please send any questions or thoughts on the consultation to paula.reid@homelesslink.org.uk www.homeless.org.uk Let’s end homelessness together