Local Housing Allowance in supported housing - consultation on new funding system


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On 31 October the Government announced its response to the consultation it closed earlier this year - which itself stemmed from a policy intention announced in the 2015 Autumn Statement - to apply Local Housing Allowance rates to all social housing including supported housing with effect from April 2019.

After widespread concerns were raised both through the consultation and via other formal and informal channels, the Government now intends to move to a system which addresses in different ways three main categories of provision in this sector:

  • Long-term supported housing will remain funded via the welfare system, as it is currently.
  • Sheltered housing and extra care will continue to be funded in the welfare system, but from April 2020 this will be through a new form of social rent called ‘Sheltered Rent’ set locally and regulated by the HCA.
  • Short-term supported housing will be funded through a new ring-fenced grant to upper—tier (or unitary) local authorities in England, set on the basis of current projections of future need.
  • While this is broadly positive, questions remain. We will be engaging with the sector on a response to the consultations on the latter two (new) funding systems, which close on 23 January 2018
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