Supported Housing Debate

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Tuesday 12th April 2016

(8 years, 1 month ago)

Westminster Hall
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Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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Welcome as the delay in introducing the housing benefit cuts for those in supported accommodation is, it is simply not enough merely to delay them. In my opinion, the UK Government must exempt supported housing tenants altogether from these devastating changes or find an alternative funding model. That is because change to housing benefit can undermine the ability of such tenants to pay their rent, thereby putting their home at risk and threatening both their physical and mental wellbeing, as well as posing a genuine threat to the financial sustainability of housing associations.

Such changes could have a devastating impact on the future provision of refuge accommodation in Scotland, where all refuge accommodation is in the ownership of either housing associations or local authorities. The Scottish Federation of Housing Associations has identified that associations in Scotland could lose between £5 million and £14 million per year, which would be completely unsustainable.

From within the industry, we have already had a range of apocalyptic warnings from informed and knowledgeable service providers. A survey conducted by Scottish Women's Aid found that,

“in a rural area, introducing a cap linked to the LHA rate”—

that is, the local housing allowance rate—

“would result in an annual loss of £5,800 for a 2 bedroom refuge flat. In an urban area, the annual loss for a 1 bedroom refuge flat would be £7,100, and in another semi-urban area the loss on a 3 bedroom refuge would be £11,600 per year.”

David Orr, the chief executive of the National Housing Federation, said in December:

“The impact of the LHA cap on the amount of Housing Benefit payable for supported housing will be stark and make it extremely difficult for any housing associations to develop new supported housing. Without existing levels of benefit being available, providers across the country will be forced to close schemes.”

That is echoed by Andrew Redfern, chief executive of Framework, a specialist housing association, who has said:

“It would mean the end of supported housing. All our schemes would close, and I think all others would as well.”

Also, an Inside Housing article from 21 January laid bare the impact of capping housing benefit, identifying that only 5% of schemes could survive, which is a shocking figure.

In conclusion, the LHA bears no resemblance to the actual costs incurred by supported accommodation providers and if, as a result, such housing options became financially unviable, vulnerable tenants might be forced into potentially costlier alternatives, such as institutional care, funding increased hospital stays, the higher cost of private landlord housing and—in the worst case—the higher costs of imprisonment. This move must surely be the very definition of fiscal irresponsibility.