Supported housing and the benefits system 2 nd November 2017 Glasgow Yvette Burgess, HSEU
Overview Background Planned changes and timescales Political pressure to re-think Issues for Scotland to deal with
Background Funding of housing element of supported accommodation has been under review since 2011* The UK Government denies that its plans for supported accommodation are about cost cutting. Damian Green, Secretary of State for Work and Pensions on 21 st Nov 2016 stated the government s intention is to ensure that the sector continues to be funded at the same level it would have otherwise been in 2019/20 however. Budget cuts from 2020/21 * DWP, HB Reform Supported Housing, July 2011
Background continued Reasons for changing the way supported housing is funded through benefits: Concern about quality and outcomes (although Scotland seen to be leading the way through regulation) Concerns about cost shunting Universal Credit roll out
Profile of supported housing Supported housing under the current system (as set out in the Ipsos MORI report*) 14% of social rented housing is supported housing (but some of these units will be bedspaces) These are located in England (85%), Scotland (9%) and Wales (6%) *Supported Accommodation Review The scale, scope and cost of the supported housing sector, Nov 2016, DWP and DCLG
Timeline Timing Nov 2016 To Feb 2017 Spring/Summer 2017 Activity Joint Communities and Local Government Committee and Work and Pensions Committee Inquiry Dec Feb. Report published in April 2017. Consultation Nov February. 592 responses. Govt response published 31 st Oct 2017. Task and finish groups including one on Short term accommodation - developing options for a workable and sustainable funding model or models for short term accommodation. Green Paper on detailed model(s) and funding distribution consideration this did not happen Autumn 2017 Announce detailed funding model(s) and local authority funding allocations (including, presumably, a devolved fund for Scotland) LHA cap for social rented housing abandoned on 25 th Oct and 3 month consultation launched on 31 st Oct April 2018 Shadow year arrangements no longer applies consultation ends 23rd January 2018. April 2019 Commencement of new funding model(s) Postponed to
In the meantime, Specified Accommodation carries on.. until 2020 at least See Scotland s Housing Network guidance
Recommendations by the Communities and Local Government Committee and Work and Pensions Committee: Abandon LHA cap Create LHA + bands for supported housing so that tenants would only need to turn to a top up fund in exceptional circumstances Emergency supported accommodation to be administered locally through a grant fund Refuges create a separate funding mechanism as they operate as a national network
Pressure on Westminster to reviews its plans Evidence about impact of the LHA cap: Need for additional supported housing Reduction in new development due to uncertainty Shortfall between rent and LHA rate and concern that any top up fund would not offer sufficient financial security Adjournment debate on 10 th October Opposition Day debate
LHA cap on supported and social rented housing abandoned on 25 th Oct
Announcement and new consultation - 31 st October Distinguishes sectors within supported housing: Sheltered and extra care housing a sheltered rent to be established from 2020 Short term supported housing - in England LAs will be given ringfenced funding to distribute and in Scotland a sum will be devolved to the Scottish Government to decide how to administer Long term supported housing housing related costs to continue to be funded through benefits system but intention is to develop measures to control costs
Consultations Two consultations launched both for England: Funding model for sheltered and extra care housing Short term supported housing The UK Government s policy statement and Consultation document: https://www.gov.uk/government/publications/fu nding-for-supported-housing
Contact details: Yvette Burgess, Unit Director, HSEU yvette.burgess@ccpscotland.org Tel 0131 475 276