1. 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

2. 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?

3. Key risks and issues For providers: Income risks
Possibility of rent referral
Lettability
Management cost pressures
Effect on future development
Direct payments?

4. 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?

5. 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

6. 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.

7. 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.

8. Contact Details Gillian Connor Head of External Affairs
Sharon Moore
Welfare Rights Adviser