Supported Housing

Dan Poulter Excerpts

Tuesday 12th July 2016 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am pleased to have secured this debate in the week before the start of the summer recess. While the Government are carrying out a review of supported housing, it is important both to obtain a progress report from the Minister as to how it is going and to re-emphasise the vital importance of putting the funding of supported housing on a sustainable long-term footing. It is absolutely essential that we do this, so as not to let down a very vulnerable group of people, whether they are elderly, young, have a physical disability, have suffered domestic violence or face mental health challenges. I seek to be helpful and not hostile, but those involved in the sector are very worried about the future, and it is vital that the Government know their concerns and take them fully into account in producing their proposals, which I hope will be available shortly.

The one-year exemption for supported housing from the 1% rent reduction for social housing landlords and the one-year delay in applying local housing allowance caps to residents in supported housing provide some breathing space, but the clock is ticking down to 2017, when this one-year grace period expires. It is important to have new policies in place well before then, so as not only to remove worries about the viability of existing schemes but to act as a catalyst for attracting much needed new investment in the sector.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing this debate and raising important issues about the barriers to good care that a lack of the right supported housing can lead to for people with learning disabilities and mental illness. Does he agree that on a daily basis many mental health wards struggle to find suitable step-down and community housing for patients who badly need it because, as he is outlining, this issue has not been properly gripped?

[Peter Aldous]

I thank my hon. Friend and Suffolk neighbour for his intervention. Yes, I agree that we need to tackle this issue very quickly.

This week, I joined the National Housing Federation’s Starts at Home campaign, which aims to highlight the unique benefits of supported housing and to show why it is so important to individuals and society. It seeks to secure a commitment from the Government to ensure that everyone can have a home that meets their unique needs. Over the past three months, I have received representations from, had meetings with and visited a wide variety of organisations, national and local, all concerned about the sector’s future. As well as the National Housing Federation, these include the Home Group, Homeless Link, the Local Government Association, Suffolk County Council, the Salvation Army, Papworth Trust and Give us a Chance, which, as well as providing accommodation, helps young people into work and sustainable employment.

--- Later in debate ---

[Peter Aldous]

My hon. Friend makes a good point. If we raise our eyes and think long term, instead of just short term, savings will be produced that can deliver the far better, high-quality supported housing we need.

[Dr Poulter]

Does my hon. Friend agree that the reality on the ground is that the lack of suitable supported housing is leading to hospitals and mental health wards having to discharge people either on to the streets in some cases, which is most undesirable as they will include some very vulnerable people, or into other very unsuitable housing situations? This issue needs to be addressed, and conversations need to be had with the Department of Health to make that happen.

[Peter Aldous]

I agree. It is important not to look at a specific type of housing in silos, because all types of housing are interrelated: we cause a problem in one, and it has a negative spin-off effect in another.

The prospect of the local housing allowance cap being applied to residents in supported housing after the one-year delay is causing considerable unease and concern in the sector. With housing benefit set to be abolished as part of the roll-out of universal credit, it is appropriate for the Government to review the future funding of supported housing. However, feedback from the National Housing Federation reveals that the threat of a crude LHA cap is having a detrimental effect.

Some 24% of supported housing providers have told the NHF that all their supported and sheltered housing units are at risk of becoming unviable and of closing. It is estimated that 156,000 units of existing supported and sheltered housing would become unviable and at risk of closure; that is 41% of all existing schemes. There would also be an impact on future development, with an estimated 9,270 units in the pipeline not being developed. That represents 80% of the total existing development pipeline and includes more than 8,000 specialist homes for older people and people with disabilities which were announced in last year’s comprehensive spending review.

The cap undermines several pieces of legislation introduced by the last Government. The introduction of specified accommodation in 2014 establishes a precedent of treating supported housing differently from other forms of social housing. In addition to being eligible for higher rates of housing benefit, specified accommodation has been removed from the current universal credit arrangements, and it is also exempt from the benefit cap. Failure to recognise this unique status when applying the cap is not only inconsistent with previous policy, but it also places at severe risk the step Government have already taken to protect housing for the most disadvantaged. It also threatens one of the Government’s own flagship policies, the transforming care programme, which relies on supported accommodation being available in the community.

In 2014 a rental agreement was approved by the Homes and Communities Agency that allowed registered social landlords to increase their rents by inflation plus 1% annually for the next 10 years. The purpose of the agreement was to provide RSLs with a stable base from which to invest in their services, including the provision of new supported housing. By capping social rents, the Government have removed this stability, making it virtually impossible for providers of supported housing to plan future developments. For those who have already invested in new schemes, the cap will also jeopardise their ability to meet the existing financial returns of current investments.