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

Minerals Monitoring and Compliance Officer

Durham County Council
Grade 9 £35,412 to £39,152 per annum
We are looking for an experienced individual who has the knowledge of service planning issues relating to development management and monitoring / comp Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824
We have a permanent post available within the Pathways Service - which provides day services Monday to Friday to adults with complex needs. We have 1 Peterlee
Recuriter: Durham County Council

Classroom Teacher

Durham County Council
£37,101 - £45, 352
Classroom Teacher (across KS1 and LKS2) Required to start 1st September 2026   The children, staff and governors of Sedgefield Primary are looking to Sedgefield
Recuriter: Durham County Council

Class Teacher- EYFS Lead

Durham County Council
£45, 352 - £51,048
The children, staff and governors of Sedgefield Primary are looking to appoint an enthusiastic and hard-working Reception Teacher to join our strong t Sedgefield
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£26,403 - £28,598
At Howletch Lane we are commited to providing a nurturing and inclusive environment where every child can thrive academically, socially and emotionall Peterlee
Recuriter: Durham County Council
Linkedin Banner