Supported Housing: Benefit

Lilian Greenwood Excerpts

Wednesday 20th July 2016 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

I am pleased to speak in this debate, and pleased that this has been selected as a topic by the Opposition Front-Bench team.

The planned local housing allowance cap is a real concern for many of my constituents, and I have been contacted by Nottingham City Homes, by Nottingham Community Housing Association and by Framework on behalf of their tenants. Supported housing provides essential accommodation for people who need it. It is already more cost-effective than the alternatives of nursing homes, care homes or hospital beds, and it is far better than people trying to live independently without the support that makes it possible.

The Government’s plans will force the closure of tens of thousands of supported homes for vulnerable and older people. In Nottingham, there are 3,491 supported living bed spaces, with 2,393 spaces for older people. Nick Murphy, chief executive of Nottingham City Homes, told me:

“We are worried about some of our older residents whose combined rent and service charges takes them above the Local Housing Allowance threshold. The limits take no account whatsoever of the cost of housing management services that we provide to keep our tenants living independently.”

City Homes has estimated that tenants will be capped in 20% of its supported living schemes, totalling 380 properties. The weekly shortfalls in housing benefit will be between £5 and £21, and 102 of the tenants in those schemes to be capped are over 80 years old.

The Government tell us that the driver behind much of the so-called welfare reform programme is to get people into work, but these are not people who can easily go out and get a job. Providers tell me that poverty or rent arrears are more likely outcomes, and that for some there is a risk that they will move into more expensive care homes, which will actually place a greater burden on already overstretched public sector budgets. Sheltered housing for older people is not just good value for money; it allows people to live independently and with dignity. Demographic projections point in only one direction, but the uncertainty surrounding the future funding of such accommodation is now preventing much needed new developments from going ahead.

In May, I went to see the work that Nottingham Community housing association does for some of my most vulnerable constituents. Stephanie Lodge offers accommodation to adults who need a short period of intensive support after a stay in a psychiatric ward. It is a unique and innovative service. Not only does it enable people to rebuild their lives in the community, but it is financially sustainable. Residents pay a weekly rent of £185; support costs vary, but the average is £396 per person per week. Rethink Mental Illness estimates that it costs £350 per day to support someone in a psychiatric in-patient bed. Stephanie Lodge is not only cost-effective, but gives vulnerable people an opportunity to live in the community with the right support, in some cases for the first time in their lives.

Framework housing association has also contacted me expressing concern about the Government’s proposals. It is dedicated to helping homeless people, preventing homelessness, and promoting opportunities for vulnerable and excluded people. Andrew Redfern, its chief executive, told me:

“In a nutshell, it means that most—if not all—of existing supported housing will cease to be viable from April 2018.”

At a time when single homelessness and rough sleeping are rising fast, that is very serious. We must contemplate a situation in which thousands of people at risk of homelessness, some of whom have multiple and complex needs, will simply have nowhere to go. There will also be a negative impact on rates of hospital discharge and prison resettlement, on care leavers, on survivors of domestic abuse, and on the transforming care programme. Framework is especially concerned about the fact that we have already lost services following the demise of the Supporting People programme, but that is nothing to what will happen in April 2018 if these proposals go ahead.

Of the 1,200 supported housing units currently provided by Framework for people with mental health, alcohol and substance-related problems in Nottinghamshire, Lincolnshire and Derbyshire, fewer than 150 will remain, and that will have an impact on people with real needs. I heard from a service user who said that she had been in genuine crisis and had even nearly lost her life, but that, thanks to Framework, she had managed to turn her life around.

I ask the Minister to listen. If she would like to join me in visiting any of the excellent services in my constituency, I should be delighted to take her to see the invaluable work that they do. The Government must rethink their proposals, rather than seeking to target those who are least able to bear the burden.