1. Future of supported and sheltered housing
26 January 2017 1

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. 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%

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

13. 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.

14. 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

15. 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

16. 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.

17. Starts at Home campaign

18. Ways to get involved and find out more
with queries
Visit the website:
See DWP research and consultation
Read our select committee response 18