Supported Housing Funding

Debate between Emma Hardy and Peter Aldous

Tuesday 10th October 2017 Westminster Hall

[Peter Aldous]

There is a need for the Government to come forward with their proposals and plans. My point is that Government, Parliament and the sector, working together, all have a role in addressing this problem.

Let me move on. The vital role that supported housing plays is recognised by all, as is the need for a sustainable long-term solution, not a short-term sticking plaster. This is not a straightforward challenge; it is vital for Government, Parliament and all those involved in the sector to work together to put in place the right funding framework. There are encouraging signs that that is happening, but there is still a great deal of work to do.

The Government made the correct first move by carrying out the first evidence review for 20 years. Its findings were published on 21 November last year—the same day the Government launched their consultation on their preliminary proposals, setting up four task and finish groups to address specific challenges. The preliminary proposals were announced on 15 September 2016 by my right hon. Friend the Member for Ashford (Damian Green), the then Secretary of State for Work and Pensions. In brief, they provide for people living in supported accommodation to have their core rent and service charges funded through housing benefit or universal credit up to the local housing allowance rate, and for costs above that rate to be distributed by local authorities from ring-fenced top-up funding provided by the Government.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

The hon. Gentleman mentions the top-up on the local supported housing allowance. In Hull, that would be only £69.73—well below the needs of the organisations that the hon. Member for Hertford and Stortford (Mr Prisk) mentioned, such as Emmaus and the Salvation Army. My fear is that the money coming from the local authority will not be ring-fenced, sustained or available beyond a certain period. Those organisations are seriously at risk of falling dramatically below the level of funding that they need to keep going and stay open.

[Peter Aldous]

I hope I can answer the hon. Lady’s question straight away. Two concerns have been expressed to me about these proposals. First, is a one-size-fits-all LHA rate an appropriate starting point for a new funding mechanism? Secondly, providers are concerned that discretionary local top-ups do not provide the long-term stability needed for investment in new facilities.