1. Future of Supported and Sheltered Housing
Welcome
Emily Bird
National Housing Federation

2. Supported and sheltered housing is important
Health & independence
Easing pressures on other services
Save £££
Life chances & aspirations
Housing associations: 422,000 homes
Although I am talking about supported and sheltered housing – not just older people’s housing – it is important that we think in this broader context as this is how the Govt is viewing (and asking) the question
Sheltered is seen as a bit of an after thought and a problem to be solved – but there is still hope that Govt will consider a slightly different approach for this type of housing
Housing associations provide 422,000 specialist homes for older or vulnerable people who need extra support

3. Why a new funding framework?
Universal Credit
Controlling costs
Local Housing Allowance cap
Meanwhile…
Shortfall of 29,053 by 2019/20 for working age people
Nearly half of all older households are under-occupying
Why are we talking about a new funding framework?
What’s the context?
The roll-out of UC, which will encompass housing costs, means that the HB system will be phased out and an alternative is required.
Not how we might design a system from scratch…

4. September announcement
“we will bring in a new funding model which will ensure that the sector continues to be funded at current levels”
Key meetings:
New DD John Hall. New unit at DCLG focussing just on supported housing. Key points from our meeting:
Consultation not likely to be ready until November, and possibly towards the end of November
Focussing on the “how” of the new system, not the what
Potentially a two-stage consultation, with the first bit just a list of questions along with the WMS, and the second part to build on the first
Keen to involve members in cross-departmental meetings
Not sure timescale of any legislative process
Feels that SH cap idea will not get any traction
Potentially sees the case for sheltered housing
Political meetings
round table with Gavin Barwell at CPC . It was a Chatham House rule event.
A sense of frustration around the room with the new model. Big pushback in particular on development certainty
Suggestions made around SH cap, sheltered housing, and a pilot. Seems very keen on pilot idea.
Made point of saying rent cut was deliberate, LHA cap was a mistake
I met with Damian Green
SH cap – we should make the case through the consultation
No chance on rent cut, and this chimes with all other conversations we’ve had
Interested to hear more about issues with direct payments and in particular how it impacts on things like interest cover
Also:
David Gauke, Chief Secretary to the Treasury,
Caroline Noakes,

5. Government announcement
LHA cap will apply to all tenants from 2019
Housing costs paid through benefit system up to LHA level
No Shared Accommodation Rate
Ring-fenced local authority top-up fund
Reason that DWP wants to apply the cap to all tenants at the start of the new system is that this is administratively much simpler than running two systems for new and existing tenants. This has come as a shock to many providers – people with long term services expected a much more gradual transition from the exiting system to the new one. Now all tenants are affected at once.
No Shared Accommodation Rate - one-bedroom LHA rate for under 35s in supported housing
Federation welcomes the use of the one bedroom rate of LHA for people under 35
DWP officials have said that the Government wants to see the ring fence in place to preserve public spending on supported housing. LGA has not opposed the ring fence. The shift from DWP spending to CLG achieves one of the Government aims in shifting this spending from Annually Managed Expenditure (AME) into Departmental Expenditure Limit (DEL).

6. Government announcement
A different solution for short-term transitional services
Rent cut for supported and sheltered from April 2017 – except refuges, alms houses and co-ops
The Government wants to look at a different solution for people living in shorter term services. It is harder for these people to fit into the existing rules for Universal Credit with monthly calculations of housing costs (e.g. there is no entitlement to help with housing costs if someone stays somewhere less than a month). It is expected that the consultation will look at how a separate system could work for these schemes. This could potentially be a wholly localised system with payments going through a block contract rather than based on individual entitlement. This could make supported housing more affordable for people working. Disadvantages could include the compete reliance on local decisions for the funding of schemes. Members need to work out what system would work best for your schemes and tenants? Government remains open minded on the solution for these schemes but at the moment sees the answer in a separate system rather than changing the rules of UC
Rent cut – will apply for the final three years of the measure from April So providers will be obliged to reduce rents for all supported and sheltered schemes apart from refuges, alms houses and co-ops and the other exceptions set out in the regulations. These include Specialist Supported Housing. This is defined in the regulations as schemes that received no or little public funding and provide high levels of care and/or support. Further information on this is in the Federation briefing on the rent cut on the Fed website. HCA estimates that there are about 10,000 homes across England in this category. REMEMBER service charges are not included in the obligation to reduce rents – either fixed or variable charges.

7. How will schemes be funded?
Now
2019 -
Other
Support and/or care costs
Support and/or care costs
Ringfenced
Local
Rents and service charges
Rents and service charges
Government announced that it intended to consult on a new more localised system of funding supported and sheltered housing. The current system pays rents and HB eligible service charges through HB as long as the tenant is on a low income.
The proposed system will pay the tenant housing costs up to the LHA cap level. This will be through Housing Benefit or Universal Credit and costs will have to be eligible according to the rules of these benefits.
Funding for costs above the LHA cap level will be available locally. Money will be transferred from DWP budgets to local authorities to fund this gap. This money will be ring fenced to pay for supported housing.
This is not to scale! The LHA cap will vary from area to area, and the amount of top up will vary from area to area and by scheme type. This is purely illustrative to show the various elements that make up the funding for a scheme.
LHA Cap
DWP

8. Concerns from housing providers
Loss of certainty for future development
Unequal impact of LHA cap as a measure
Protecting existing tenants
How (if) existing tenants will be protected
Particular models: sheltered; short term
Impact of the rent cut
Fed response - We welcomed:
No LHA cap until 2019
No Shared Accommodation Rate
Pledge to fund housing costs to the same extent as they are currently
The ring-fencing of funds
Uncertainty for customers

9. Size, scope and cost of supported housing
Headlines:
651,500 units of supported housing in GB
71% of the total are housing for older people
Housing associations more than 70% of the total units.
The cost of the sector in terms of Housing Benefit at £4.12bn per year
Another £2.05bn of non-Housing Benefit expenditure on care and support services.

10. (*%)
Source: Local authority survey. Base: 83 Commissioners. Fieldwork dates: 19 October – 2 December 2015

11. People with drug or alcohol misuse needs
Source: Local authority survey. Base: 83 Commissioners. Fieldwork dates: 19 October – 2 December 2015

12. Q8/9. Still thinking about other sources of funding beyond rent and service charge for all the client types for whom you provide supported housing services as a whole, please indicate what percentage of this other funding comes from the following sources?
Local Authority Adult social care
Local Authority housing/ homelessness
Health – NHS Trusts, Clinical Commissioning Groups - & Social Care Partnerships
Fundraising and donations
Local Authority Children’s services
Substance misuse service (eg Drug Action Team/ Alcohol & Drugs Partnerships)
Charitable grants
Big Lottery funding
Supporting People
Home Office
LA general funds
Mixed
Criminal justice – Youth Offending Team, Probation
Employment & education (eg Jobcentre Plus, EFA, SFA)
NHS organisations including Public Health
Corporate/ Businesses
Other
Source: Provider survey. Base: 86 providers. Fieldwork dates: 17 February – 9 March 2016

13. Consultation launch
Sets out rationale for change – Universal Credit and local focus
Deadline Feb 13th
Green Paper to follow Spring 2017 with more detail
Autumn 2017 – detailed model announced
Shadow year arrangements in place
Commencement of new funding model
Worth mentioning 4 task and finish groups too

14. 5 key areas the consultation will cover
General: the how, not the what
fair access to funding, including the detailed design of the ring fence and any additional protections
local roles and responsibilities
arrangements to provide oversight and assurance
the appropriate balance between local flexibility and stability
developing a funding model for short term accommodation, including hostels and refuges
the consultation focuses on the how of the new model, not the what

15. What will the local system look like?
Issue: We were concerned about any localisation of housing spend. How do we achieve certainty through this approach? Can we?
Key questions:
Upper-tier or lower tier? Or other tier? And what local roles and responsibilities?
Collaboration across different types of commissioning body?
National or local commissioning framework?
Statutory duties? What would they be?
Oversight and assurance
Would top-up follow the individual or scheme?
How will the money flow, and how much, to where?
On stat duties
- Duty to measure stock and provision locally, and then define local need on a regular basis?
Duties for certain groups?
Is it possible to achieve the same level of certainty as through the benefits system? What about new supply?

16. A different approach for sheltered?
Issue: Cost doesn’t greatly exceed LHA cap, risk sheltered won’t be prioritised. Also bureaucratic.
Key questions:
Is this the right case to make?
How can we demonstrate sheltered needs to be funded differently, as opposed to any other form of supported housing?
Does extra care form part of this case?
If we make case for LHA + x%, do we close down access to local pot?
What will your approach to sheltered be if we don’t succeed?
Cost of r+sc doesn’t greatly exceed LHA cap, risk sheltered won’t be prioritised. Also bureaucratic.

17. What’s next? 15 Sep Government announcement Nov Consultation opens
Dec/Jan
Federation consults and forms views
Autumn -
Contact with local MPs and decision-makers
Feb 2016
Consultation closes

18. Starts at Home campaign
Campaign has been used to date to raise awareness of supported housing and to put pressure on the Government to put supported housing on a sustainable and secure financial footing.
Please get involved in our festive actions

19. Ways to get involved and find out more
Respond to the Government consultation here: for-supported-housing
Federation proposals: library/browse/proposal-for-a-strong-and-sustainable- future-for-supported-and-sheltered/
with ideas
Visit the website: