1. Funding supported housing webinar
November 2017
Let’s end homelessness together

2. 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
Let’s end homelessness together
Let’s end homelessness together

3. 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
Let’s end homelessness together

4. 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
Let’s end homelessness together

5. November 2016 consultation - feedback
Let’s end homelessness together

6. 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
Let’s end homelessness together

7. 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
Let’s end homelessness together

8. 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
Let’s end homelessness together

9. 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
Let’s end homelessness together

10. 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.
Let’s end homelessness together

11. 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?
Let’s end homelessness together

12. 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
Let’s end homelessness together

13. 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
Let’s end homelessness together

14. 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
Let’s end homelessness together

15. 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?
Let’s end homelessness together

16. Consultation information
Consultation papers and the task and finish group reports can be found on the Government website, deadline is Tuesday 23rd January 2018:
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
Let’s end homelessness together