Councillors at Telford and Wrekin Council have called for an urgent review of the Government’s funding provision for housing benefits and the way they are issued to local authorities.

Cabinet Member for Safer and Stronger Communities Cllr Paul Watling put forward a motion at a full council meeting yesterday urging the Government to reconsider the way it funds housing benefit which is allocated to supported housing.

The councillor won approval for the motion aimed at ensuring that the council is fully reimbursed for housing cost payments it makes on the Government’s behalf.

Councils are not fully subsidised for the housing benefit they pay to some types of accommodation, where often the rent can be significantly higher than the amount charged for mainstream accommodation.   

The Government has acknowledged that the current system for the funding of additional housing costs associated with supported accommodation is in urgent need of reform. While many government reviews over the last 10 years have concluded that the whole scheme needs urgent overhaul, there has been no action to date.

Cllr Watling said: ‘Over the last decade we have seen the number of units of supported accommodation rise significantly and the average housing costs increase exponentially. 

‘For 2022-23, we forecast that these schemes will directly cost the council and the local taxpayer over £900,000.  

‘Therefore we call on the Government to reconsider housing benefit payments which are linked to supported housing to ensure that Telford & Wrekin Council and other councils are fully reimbursed for the housing cost payments which we are obliged to make.’

Seconding the motion, Cllr Angela McClements said: ‘The supported housing sector is only set to expand further in the future, and the financial impact on councils is untenable in the current economic climate so we strongly urge the Government to review this funding provision.’

This article was originally published by The MJ (£).