I completely agree that for many vulnerable people supported accommodation plays a vital role. The Government is committed to building a secure long-term funding framework for the sector, and encouraging further development in the sector.
The changes to Housing Benefit announced in the 2015 Autumn Statement involve aligning the rules for claimants in the social sector with those for claimants renting privately. This means extending the Local Housing Allowance rules, which limit the amount of rent which Housing Benefit will cover, to the social sector. Let me assure you, however, that the Government recognises the importance of ensuring those who are providing supported accommodation to some of the most vulnerable members of our society receive appropriate protections. That is why Government departments have been engaging closely with providers to better understand the issues faced by the supported housing sector, which is made up of an extremely wide variety of housing types.
I welcome the fact that, as a result of these discussions, the Government has decided to delay any change in the sector’s funding regime to 2019. From 2019 the Local Housing Allowance rules for Housing Benefit will apply to the supported housing sector, but this will not include the Shared Accommodation Rate, in recognition of the particular challenges this would have placed on tenants.
To reflect the higher average costs of offering supported accommodation, which may go above the level of Local Housing Allowance, the Government will devolve ‘top up’ funding to local authorities. This will give local authorities an enhanced role in commissioning supported housing, and allow them to take a more coherent approach to planning for housing needs in their area.
The Government will shortly launch a consultation on developing the details of this new funding model for the supported housing sector. I welcome the considered approach the Government has taken on this issue, and hope that providers will continue to engage with the Government to ensure the new model is effective and appropriate.