William Eichler 27 August 2025

Supported housing shortage costs NHS £71m, warns LGA

Supported housing shortage costs NHS £71m, warns LGA image
© Clare Louise Jackson / Shutterstock.com.

Local government leaders have called on the Government to invest more in supported housing to help save the NHS £50m a year.

The Local Government Association (LGA) estimates that a shortage of supported housing in 2023-24 cost the health service £71m through delayed mental health hospital discharges.

The local government body argues that expanding provision has the potential to save up to £50m a year for the NHS and deliver a total annual saving of £6bn for the wider public purse.

Cllr Dr Wendy Taylor, chair of the LGA Health and Wellbeing Committee, said: ‘Groundwork is being laid by councils across the country, through innovative working ahead of the implementation of the Supporting Housing Act. But, without much-needed long-term investment in this essential preventative care service, many older people and those with physical and learning disabilities will continue to be in hospital and residential care longer than necessary.’

The LGA’s call coincides with the publication of new guidance for councils highlighting the growing demand for supported housing provision.

The National Housing Federation found that by 2040, additional demand for supported housing will exceed 200,000 units.

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