William Eichler 02 May 2017

MPs call for plans to base supported housing allowance on private rates to be 'scrapped'

The Government should scrap plans to base rent allowances for supported housing tenants on rates used for claimants in the private rented sector, MPs say.

A joint report from the Work and Pensions and Communities and Local Government Committees said it is inappropriate to use the Local Housing Allowance (LHA) rate to calculate rent allowances for supported housing.

They argued that instead there should be a new Supported Housing Allowance, banded to reflect the actual cost of provision in the sector.

The LHA is a way of working out how much housing benefit you can get to help pay the rent if you have a private landlord. If you rent from a council or housing association or have a shared ownership home, different rules are currently used to calculate your housing benefit.

The committee said the Government was right to consider an alternative funding mechanism for emergency accommodation, given the inability of Universal Credit to reflect short-term changes in circumstance.

But they concluded the best course of action was to provide grants to local authorities, which can commission accommodation and pay providers.

Under the current proposals for supported housing, core rent and service charges for supported housing tenants would be funded up to the level of the applicable LHA rate. For costs above this, the Government would devolve ring-fenced top-up funding.

But the committee found that the cost of provision is largely consistent across the country, unlike the LHA rate. Consequently, some areas will rely more on top-up than others.

As this is considered a less secure funding source, the committees are also concerned that providers will be put off investing in particular areas, creating a disparity between the supply of homes and services across the country.

‘Supported housing is deeply valued by those who live in it and contributes enormously to their independence and wellbeing,’ said Richard Graham, co-chair of the inquiry and member of the Work and Pensions Committee.

‘We support the Government’s aims to reform funding for this vital sector to ensure quality and value for money, protect and boost supply, and provide greater local control.

‘But we are concerned that the proposals, as they stand, are unlikely to achieve these objectives.

SIGN UP
For your free daily news bulletin
Highways jobs

School Crossing Patrol Officer - Thomas Willingale School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Thomas Willingale SchoolPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

Senior Practitioner - Leaving & Aftercare Team, Mid Essex

Essex County Council
£46574.0000 - £56027.0000 per annum
Senior Practitioner - Leaving & Aftercare Team, Mid EssexPermanent, Full Time£46,574 to £56,027 per annumLocation
Recuriter: Essex County Council

Employability & Skills Adviser - NEET

Essex County Council
£32701.0000 - £38471.0000 per annum
Employability & Skills Adviser - NEETPermanent, Full Time£32,701 to £38,471 per annumLocation
Recuriter: Essex County Council

Customer Services Assistant

Essex County Council
Up to £25081.00 per annum
Customer Services AssistantPermanent, Part Time - 18.5 hours £25,081 per annum (FTE)Location
Recuriter: Essex County Council

School Crossing Patrol Officer - Bishops' CE & RC School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Bishops' CE and RC Primary SchoolPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council
Linkedin Banner