1. Future funding for supported housing?
What are the risks?

2. Current Income Streams
As with general needs
Rent (for the bricks and mortar)
Service charges (Grounds maintenance; communal electricity costs; lift maintenance; door entry systems)
Additional service costs in sheltered/supported housing (for communal lounges, laundries, kitchens, etc.)
Additional housing management/maintenance costs
Housing Related Support (previously Supporting People)
Care costs where required
Right to Buy?

3. Funding the housing costs in future
Universal Credit
Ministers have long since accepted that supported housing bricks and mortar costs need to be addressed outside universal credit. (Exempt/specified accommodation)
Awaiting overdue DWP Report re the future of supported housing funding – which was commissioned to consider how the sector would be funded once housing benefit was subsumed into Universal Credit

4. Reducing the welfare benefits bill
Two key Government announcements - initially
Reduction in social rents of 1% a year for the next 4 years from April 2016
Social housing rents to be capped at LHA levels (affecting tenancies from April 2016 but not hitting tenants/providers until April 2018
After sector protests – 1% rent reduction deferred by 1-year and LHA cap with only affect tenancies after April 2017
Both changes intending to buy time pending the long-awaited DWP report.

5. Potential impact of Government announcements
Rent reduction of 1% a year (as against CPI + 1%) - reduced revenue income/impact on any new development
LHA – in Mole Valley would mean cap of £84.84 a week for single rooms (including service charges) and £ for 1-beds
NHF research has indicated that swathes of supported housing across the UK would close if this was implemented
Development has come to a grinding halt

6. Housing related support and care costs
Surrey County Council Revenue Support Grant slashed over next two years – far more drastic cuts than SCC had anticipated
Currently in negotiations with all providers to achieve savings
Housing Related Support vulnerable as not a statutory duty
Value of prevention is recognised

7. National Housing Federation Task & Finish Group
Established to consider future model for supported housing
Government have indicated that they will listen to providers and that they are supportive of the sector
DWP Review will not now be published until July, after the Referendum
However, the Minister has indicated that the £4 billion housing benefit bill for supported housing is a concern

8. National, local or a mix?
Single funding stream for housing & support - administered locally
i.e. housing, extra service costs, support & care together provided locally
Single funding stream for housing & support - administered nationally
i.e. housing, extra service costs, support & care together provided nationally
Mixed funding system with some/all housing elements via benefit system and a locally determined additional payment for other costs
i.e. housing & extra service costs via benefits, with (C) care & support provided locally
or housing via benefits, with extra services, care & support provided locally
Mixed funding system with some/all housing elements via benefit system and a nationally determined additional payment for other costs
i.e. housing & extra service costs via benefits, with support & care provided nationally
or housing via benefits, with extra services, care & support provided nationally

9. Value for money
DWP – are not challenging importance of supported housing but believe the full costs should not be picked up by the benefits bill
Need to demonstrate benefits to other departments – health/local government
Supporting People budget not ringfenced since April 2009 – many LA’s have slashed funding
This has led to cost shifting to service charge element of housing benefit, to greater or lesser extent across the country
Intensive housing management/concierge

10. The Government need some control mechanisms
Early NHF discussions
Need for transparency
Need to flush out cost shifting and to identify need for alternative, sustainable funding streams
Why do some services cost more than others, ostensibly for the same thing?
Should the control be local or national – and the pro’s and cons of each
Schedule of rates of costs?
Demonstration of invest to save across departments

11. Right to Buy
A part of the Housing & Planning Bill currently passing through Parliament
Government hopes it will pass by Queens Speech on May 18th – ambitious!
NHF agreement with Government – full compensation for housing associations
Qualifying tenancies? Qualifying time as tenant?
Stock holding local authorities to foot bill
Every housing association tenant to have the right to purchase a home at Right to Buy level discounts, subject to the overall availability of funding for the scheme. But ……..

12. For the Grange?
The presumption is that housing associations would sell the tenant the property in which they live.
Housing associations would have discretion not to sell, for example where it is adapted for special needs tenants. In that event, housing associations would offer tenants the opportunity to use their discount to buy an alternative home from either their own or another association’s stock.
The Government would compensate the housing association for the discount offered to the tenant and housing associations would retain the sales receipt to enable them to reinvest in the delivery of new homes.
Housing associations would be able to use sales proceeds to deliver new supply and would have flexibility to replace rented homes with other tenures such as shared ownership.

13. Possible talking points for The Grange
Existing rent and service charge levels vis-à-vis LHA
Quantifying the service charge over and above general needs
Are there any housing management/maintenance cost that would justify higher core rent?
Apportionment of costs over care/HRS – is there duplication that can be teased out to assist Surrey (control better than imposition)!
Cost shifting to housing benefit may be a very short-term solution but unlikely to be sustainable
Meanwhile – the uncertainty of business planning/viability/impairment/cocktail of cuts
An approach to Right to Buy